STOCKHOLM, Sept 26 Reuters HM, the world39;s secondlargest listed fashion retailer, said on Thursday it no longer expected to reach its fullyear earnings margin goal, while reporting a lowerthanexpected operating profit for the JuneAugust period.

HM has struggled to boost its profitability amid high inflation and stiff competition from its bigger Spanish rival Zara, owned by Inditex, and the rapid growth of cutprice online fastfashion retailer Shein.

At present we estimate that this year39;s operating margin will be lower than 10, Chief Executive Daniel Erver said in a statement.

The accumulated margin stood 7.4 for the first three quarters.

The fullyear operating margins for 2022 and 2023 were 3.2 and 6.2 respectively, and HM had cautioned in June that factors such as materials costs and foreign currency had made the 2024 target more difficult to reach.

Operating profit for the Swedish group39;s fiscal third quarter stood at 3.51 billion Swedish crowns 346 million against a yearearlier 4.74 billion and a mean forecast in an LSEG poll of analyst of 4.93 billion.

HM said its autumn collection has been very well received and that sales for the month of September were expected to rise by 11 in local currencies compared with the same period last year.

Inditex earlier this month reported a jump in sales of its autumn and winter collection after a sluggish summer marred by poor weather while Britain39;s Next raised its profit forecast on the back of better than…