H&M profits almost wiped out as soaring costs hit fashion retailer

Results highlight the challenge for fashion retailers facing higher bills for textiles, energy, and shipping

H&M said 'rather than passing on the full cost to our customers, we chose to strengthen our market position further'.

H&M said that soaring costs had slashed its profits, the latest fast-fashion retailer to feel the pinch as consumers cut back.

Shares in H&M, the world's No 2 fashion retailer, closed 4% lower as quarterly operating profit sank to 821m Swedish crowns (€73.2m), well below analysts' forecasts.