Fashion retailer H&M's operating profit tumbles more than expected

Last year, H&M launched a drive to cut costs with savings from layoffs and other measures starting to show

The group flagged in November it would cut around 1,500 jobs and book an around 800m crown restructuring charge in the fourth quarter. REUTERS/Mike Segar/File Photo Stock Generic

H&M, the world's second-biggest fashion retailer, reported a much larger dive than expected in September-November operating profit on Friday, slammed by soaring costs and weakening consumer confidence.

During that period, the Swedish group's fiscal fourth quarter, operating profit was 821m Swedish crowns (€73.7m) against 6.26bn a year earlier and a mean forecast of 3.67bn in a Refinitiv poll of analysts.