STOCKHOLM (Reuters) -Swedish fashion group H&M reported on Thursday a substantially bigger rise than expected in third-quarter profit as shoppers took to autumn styles, but warned of higher tariff related costs in the current quarter.

The world’s second-largest listed apparel retailer predicted the cost of tariffs on imports would have a bigger impact on gross margin in the three months through November.

H&M is trying to boost profitability and attract shoppers through trendier clothes to compete with Shein and Inditex’ Zara, while U.S. tariffs disrupt the fast-fashion industry.

“The autumn collections have been well received,” H&M said in a statement.

Following two consecutive fiscal quarters of falling earnings, June-August operating profit was 4.91 billion crowns ($523 million) agai

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