H&M Strategies for a Fashionable Turnaround

H&M's fourth-quarter sales fell short expectations, partly due to a late Black Friday. CEO Daniel Erver notes marketing efforts showing early success with a 4% rise in December sales. However, challenges remain from competitors like Shein, and it faces skepticism on its growth strategies.

H&M experienced weaker-than-anticipated fourth-quarter sales, which the company attributed in part to a late Black Friday. Nonetheless, the Swedish fast-fashion giant saw a promising 4% sales increase in December and January, signaling a potentially brighter fiscal year start.

CEO Daniel Erver, who marked a year in his role, credited investments in marketing for the improved figures, noting a rise in operating profit margins. The company faces fierce competition from budget-friendly online retailer Shein and industry heavyweight Zara, owned by Inditex.

In a bid to regain momentum, Erver boosted marketing spending, enlisting pop sensation Charli XCX to promote H&M's autumn line. Despite these efforts, shares fell over 5% as analysts warned more progress is needed. The store closure strategy continues amid these challenges.

(With inputs from agencies.)