H&M has a big problem — $4.3 billion worth of unsold clothing to be exact. The Swedish fashion retailer is reportedly struggling with an increasing amount of unsold inventory.
The fast fashion giant released its latest quarterly report on Tuesday in which it outlined the growing problem. As The New York Times reports, this could be a sign that H&M is struggling to adapt to increased competition and changing consumer demands.
According to the same article, H&M reported an unexpected quarterly drop in sales last year – its first in two decades. Foot traffic also fell in the past year as customers shopped online more in favor of heading to overcrowded stores.
The aforementioned quarterly report outlines that the pile of unsold stock had grown seven percent in the past year and is worth nearly 35 billion Swedish kronor now.
Critics are reportedly blaming poor inventory management and underwhelming product offerings for the problem. H&M CEO Karl-Johan Persson has countered this, however, claiming inventory levels have been increased keep up with 220 new stores that the company is opening.
For the full story, head to The New York Times article here.
In other news, Elon Musk has deleted Tesla and SpaceX’s Facebook pages after someone challenged him to do so on Twitter. Read more on that here.
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