After a rocky start to 2018, Swedish retailer
The fall in profits has been attributed to weather changes in the early part of the year, which saw a warmer-than-expected January followed by a cold February. This put the company in a difficult position and led to H&M building up its largest stock pile of unsold goods in over 20 years. This, in turn, meant that the company was forced to drastically cut prices in order to shift stock.
The past three months have also seen H&M struggle in other ways, including a racism scandal in early January, followed by accusations of copying designs and a huge backlash to its proposed graffiti lawsuit.