H&M's Performance Dips Despite Marketing Push
H&M reported weaker-than-expected fourth-quarter sales, partly due to a late Black Friday, but noted a 4% rise in sales for December and January, indicating a strong start to the new fiscal year. CEO Daniel Erver highlighted successful marketing efforts, although market share trends remain challenging.
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Swedish fast-fashion giant H&M reported its fourth-quarter sales, revealing a weaker-than-forecast performance primarily attributed to a late Black Friday. Although fourth-quarter sales rose to 62.19 billion Swedish crowns, the figures fell short of analysts' expectations. However, the company noted a 4% increase in sales for December and January, suggesting a better start to the fiscal year.
The company's shares saw a 4.5% drop at market open. Despite this, CEO Daniel Erver pointed to a positive outlook, emphasizing that strong online sales and effective marketing strategies, including collaborations with pop star Charli XCX, have enhanced brand positioning. Operating profit margins also improved slightly over the previous year.
Analysts, however, remain cautious, indicating that the intensified marketing efforts have not substantially shifted market share trends. H&M is streamlining operations by folding its Monki brand into Weekday, leading to numerous store closures. This strategic shift aims to bolster performance in a competitive retail landscape.
(With inputs from agencies.)