H&M has reported ”disappointing” results in its fourth quarter as footfall declined and it struggled to compete with online retailers.
H&M’s profits plummeted 34% to £440m, as store traffic declined in the three months to November.
It also pointed to a decline in in-store sales in December, as it struggled to compete with the rapid rise of online shopping.
According to reports, company boss Karl-Johan Persson conceded that last year’s sales had been “disappointing”, adding that strategic “mistakes” had been made.
He said: “The fashion industry is changing fast. At the heart of the transformation is digitalisation and it is driving the need to transform and rethink faster and faster.”
H&M said it will close 170 stores this year, while opening 390 new ones.
The retailer has made heavy investments in digitisation during the period, which it said also impacted its bottom line.
After launching a number of private brands in recent years, H&M said it is planning further launches in 2018.