H&M's Sales Miss Q4 Expectations Despite Profit Growth and Strategic Revamp

The Swedish retailer faces challenges from competition and economic pressures but sees early signs of recovery in the new fiscal year.

H&M reported Q4 2024 sales of 62.19 billion Swedish kronor, falling short of analyst expectations, though sales grew 3% in local currencies.
Full-year operating profit for 2024 slightly exceeded forecasts at 17.3 billion Swedish kronor, helped by cost controls and online sales growth.
CEO Daniel Ervér emphasized efforts to streamline operations, improve product offerings, and modernize supply chains to compete with rivals like Zara and Shein.
Inventory challenges, delayed Black Friday sales, and economic pressures, including inflation, have weighed on H&M's margins and market share.
The company reported a 4% year-over-year sales increase for December 2024 and January 2025, signaling a potentially stronger start to the new fiscal year.