Q2 operating profit 7.1 bln SEK vs forecast 7.4 bln
Q2 net sales up 3 in local currencies
Sees drop in June sales, partly due to poor weather
Shares fall as much as 15

STOCKHOLM, June 27 Reuters HM cast doubt over its fullyear profit margin target on Thursday after missing quarterly earnings forecasts and predicting a fall in June sales, sending shares in the world39;s No.2 listed fashion retailer down as much as 15.

Sales this month are likely to fall 6 in local currencies versus a year earlier, partly due to poor weather in many markets, the Swedish company said.

CEO Daniel Erver said HM still stood by its 10 operating margin goal for 2024, but that it had got harder to reach.

External factors that influence our purchasing costs and sales revenues, including materials and foreign currency, will have a more negative impact than we expected in the second half, he said.

The group said it would need stronger sales growth in the two remaining quarters to hit the margin target, which it aims to achieve by offering more discounts.

HM offered fewer discounts in June, which was a positive sign for the long run but had a negative impact for the month, Erver told analysts and reporters.

HM has often fallen short of Zara owner Inditex, while Chinafounded fastfashion group Shein is expanding rapidly in Europe and plans a London stock market listing.

The Swedish group has been squeezed between the rockbottom prices of Shein and Inditex39;s higherend fashions aimed at more…