H M Faces Slow Start to Spring Season with Underperforming First-Quarter Sales

H&M, the Swedish fast-fashion retailer, has reported lower than anticipated sales for the first quarter. The company's sales rose by 1% in March, signaling a modest beginning to the spring and summer season. This performance has raised concerns about the brand's financial trajectory. For the period spanning December to February, H&M recorded sales of 55.3 billion Swedish crowns ($5.52 billion). This figure falls short of analysts' projections, which had anticipated 55.9 billion crowns. CEO Daniel Erver acknowledged the results, stating that sales and earnings were weaker than expected. Increased discounting and marketing investments have impacted H&M's profitability. The operating profit margin decreased to 2.2% from 3.9% in the corresponding period last year. Erver, who has been at the helm for just over a year, is implementing marketing strategies, including collaborations with pop stars like Charli XCX, to enhance the brand's appeal and competitiveness against rivals such as Zara and Shein.