H&M Struggles Amid Fast-Fashion Pressure

Swedish retailer H&M reported weaker-than-expected sales for the fourth quarter, attributing the downturn partly to a delayed Black Friday. Despite a 4% sales rise in December and January, the company faces strong competition in the fast-fashion sector. CEO Daniel Erver cites increased marketing and improved shopping experiences as positive influences.

Swedish fast-fashion giant H&M announced a drop in fourth-quarter sales, falling short of analyst expectations. The retailer attributed this to a delayed Black Friday, which shifted substantial sales into December, skewing the figures.

Despite the setback, H&M reported a 4% increase in sales during December and January, suggesting a promising start to the new fiscal year. The company's shares, however, faced a 4.5% hit when markets opened, reflecting investor concern.

CEO Daniel Erver, now a year into his role, emphasized the positive impact of stronger online sales, improved shopping experiences, and effective marketing strategies. Still, H&M faces fierce competition from Chinese retailer Shein and other industry leaders like Inditex's Zara.

(With inputs from agencies.)