

Despite high-profile collaborations with both Erdem and Nicki Minaj last fall, H&M admitted that it is sitting on a stockpile of $4.3 billion worth of unsold dresses, accessories, and other clothing and has seen a 62 percent drop in profits in the three months through February of this year, The New York Times reports.
While this is bad news for the Swedish retailer, which also owns Cos and & Other Stories, it’s great news for everyone else since H&M plans to slash prices in the upcoming months to get rid of the unsold stock to fix the problem. But some of that inventory includes months-old Halloween costumes and Christmas sweaters, according to the Washington Post.
The Erdem x H&M presentation in October 2017
The massive pile of unsold clothing—a 7 percent increase in the past year—is just one example of how the fashion giant has been unable to keep up in a world where more shoppers are skipping stores and heading online to buy clothes instead.
In addition to cutting prices, H&M also plans to cut back on opening new stores and focus their efforts on expanding their online business by 25 percent this year.
However, that might not be enough to fix the problem and financial analysts aren’t optimistic about the company. In fact, one even called H&M “a slow-motion wreck” after seeing the company’s first quarter results, according to The New York Times.
Part of the problem is that the millennial consumer base is starting to opt for well-made clothes rather than cheap "throwaway products," Milton Pedraza, CEO of New York-based market research firm Luxury Institute, told the Washington Post. They're more interested in "classic and quality, neither of which H&M has been able to deliver."
But for those who are still loyal to H&M, keep an eye out for massive sales in the upcoming months.
Lyndsey Matthews is the Destination News Editor for AFAR; previously she was a Lifestyle Editor across all of Hearst Digital Media's brands, and a digital editor at Martha Stewart Weddings and Travel + Leisure.
-
The Cannes Film Festival 2022: The Best Red Carpet Looks
Here's what everyone wore for the festival's 75th year.
By Sara Holzman
-
The 30 Best Black TV Shows Ever
Clear your schedule. You have some binge-watching to do
By The Editors
-
Take a Tour of Ali Wentworth's Personal Library
The author and actress shares her favorite reads in 'Shelf Portrait.'
By Neha Prakash
-
Found: The 48 Best Pajamas on Amazon
Wake up your sleep style with these cozy picks.
By Sara Holzman
-
The 16 Best Jeans on Amazon: Our Guide
We dug deep for hidden gems.
By Sara Holzman
-
The 25 Best Spring Skirts of 2022
Skip into the new season with a flowy, dreamy skirt.
By Sara Holzman
-
The 20 Best Straight-Leg Jeans to Refresh Your Wardrobe With
A classic.
By Julia Marzovilla
-
The 60 Best Winter Jackets and Coats for Women
Consider this your ultimate guide.
By Julia Marzovilla
-
Found: The 17 Best Cropped Cardigans of 2022
The coziest solution to your wardrobe limbo.
By Shelby Comroe
-
24 Winter Sweaters That Make the Cold Bearable
From chunky knits to soft cashmere, I want them all.
By Julia Marzovilla
-
The French Fashion Brands Everyone Should Know
They have that je ne sais quoi.
By Sara Holzman