H&M reported a fourth-quarter operating profit of 4.6 billion SEK ($420 million), exceeding analysts' expectations of 4.2 billion SEK. For the full year, the company's operating profit reached 17.3 billion SEK ($1.57 billion), slightly above the forecast of 17.2 billion SEK. Despite these positive profit figures, H&M's fourth-quarter sales fell short of expectations, attributed to a late Black Friday shopping period. The retailer's shares dropped over 4% following the release of its financial results. CEO Daniel Erver acknowledged the need for H&M to enhance its competitive edge against rivals like Zara and Shein, indicating a strategic shift to improve brand value amidst fierce competition in the fast-fashion sector. The company is also exploring regional supply chains in response to potential import tariffs in the U.S.