H&M Sales Miss Marks, Focus on Product Quality

H&M's recent fourth-quarter sales fell short of expectations, with a 3% increase in local currencies, below analyst forecasts. CEO Daniel Erver emphasized the need for the company to enhance its product quality and trendiness, not just compete on price, to regain market share from rivals like Zara and Shein. The company's shares dropped 5.75% following the sales report, despite beating profit estimates due to improved gross margins. H&M has increased investments in marketing and collaborations with influencers to attract younger, fashion-conscious consumers. While the company reported a 4% sales increase in December and January, it remains cautious about future margins due to ongoing external challenges. Analysts note that despite these efforts, the impact on market share and sales growth remains inconsistent and patchy.