H&M Third-Quarter Profitability Declines on Garment Costs

Hennes & Mauritz AB reported a decline in third-quarter profitability and warned that higher garment costs will weigh on margins the rest of the year.

The shares fell as much as 4.2 percent, the most in six months, after Europe’s second-biggest clothing retailer also said September sales advanced at the slowest pace in a year as warm weather in many markets held back shoppers from updating their autumn wardrobes.