The Swedish fashion brand, H&M reported flat sales in its recent quarter as it has been struggling with high competition from Zara-owner Inditex and other brands.
H&M shares fell more than 4% after the company said June-August local-currency sales.
Inditex, Zara, Primark, and the fast-fashion retailer from China, Shein are its main competitors whether its is the appealing designs or prices.
According toYahoo Finance, while H&M has struggled to pass cost increases on to shoppers through higher prices, Inditex raised prices early and spent on marketing to elevate its Zara brand, for example by working with fashion photographer Steven Meisel.
However, the company said efforts to achieve its goal of a 10% operating margin in 2024 were “going in the right direction,” and that it prioritized profitability during the quarter.
Source: Yahoo Finance
