H&M's Marketing Push: Battling Challenges Amid Changing Retail Landscape

H&M reported weaker sales for Q4 due to late Black Friday but showed improvement in December and January. Facing competition from Chinese retailer Shein and Zara owner Inditex, H&M has increased marketing efforts, including hiring Charli XCX for campaigns. Despite challenges, there's optimism for future growth.

Swedish fast-fashion giant H&M recently revealed its fourth-quarter sales fell short of expectations, partly due to the timing of Black Friday. However, sales rose by 4% in December and January, suggesting a stronger start to the new fiscal year.

H&M's CEO, Daniel Erver, noted that marketing investments are gaining traction. The company's innovative marketing initiatives include employing pop star Charli XCX to promote their autumn collection and perform at events during major fashion weeks. These efforts aim to make H&M more appealing in a competitive market.

Despite these moves, analysts highlight the need for ongoing improvements. H&M is working on store closures and integrating its Monki brand into Weekday to streamline operations. The retailer ended 2024 with fewer stores but proposed an increased dividend, signaling cautious optimism for investors.

(With inputs from agencies.)