H&M is reportedly plunging after the controversy the bubbled up around its racist monkey hoodie advertisement.
The Sweedish fashion retailer hired a diversity leader following the ad that showed a young black child dressed in a hoodie with the words “coolest monkey in the jungle” on the front.
Bloomberg is reporting that H&M has around $4 billion of unsold clothes. Industry analysts are blaming discount sales and a cold winter on the lack in incoming dollars, however the Washington Post claims “changing consumer tastes and increasing competition” are the biggest factor.
Regardless, profits are down to their lowest levels in 16 years. The retailer is expecting their sales to return to normal. “We take a long-term view that, together with our knowledge and experience enable us to navigate through times such as this… back to healthy growth in both sales and profitability,” he company said in a statement.
Previously we reported that H&M is closing its largest number of stores in two decades. At the beginning of this year, the company estimating closing 170 shops and open a total of 390 new ones, which is its biggest number of store closures since at least 1998.
Photo: Sean Gallup/Getty Images
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