“H&M's results are disappointing and are further evidence that the big players in the clothing market have been underperforming. The way people are shopping for clothes and shoes is changing and H&M has not reacted fast enough to these changes. As people are shopping more online, with Mintel's research showing that online sales of clothing grew 17% to reach £14 billion in 2017, H&M has been highly exposed to the decline in footfall on the high street due to its large store network. Its multichannel offer lags behind many of its competitors and given that Mintel's consumer research shows that 46% of online shoppers reserved fashion items online for in-store collection, it is highly surprising that the retailer is only just rolling out click-and-collect services and online returns in store. As a young fast fashion retailer, like Topshop and New Look, H&M is under increasing pressure from the nimbler young fashion pureplays such as Asos, Boohoo and Missguided that have shaken up the youth fashion sector and been delivering the latest trends at breakneck speed. While H&M's strategy of speeding up its supply chain, optimising the store network and improving the digital shopping experience makes sense, in a challenging market it will be hard-pressed to catch up with better performing rivals such as Zara.”