H&M's new CEO, Daniel Erver, is under scrutiny as the company reports its first quarterly earnings under his leadership. Investors are eager for a plan to reignite revenue growth, especially after H&M shares dropped following the unexpected departure of the previous CEO.

H&M is struggling to keep pace with rivals like Zara and the fast-rising Shein. The company is caught in a squeeze, with some consumers favoring established brands while others seek out budget-friendly options. H&M is expected to report its weakest quarterly sales in two years.

Despite the sales slump, H&M is prioritising profitability over volume. They aim to reach a 10 per cent operating margin this year. The company is also investing heavily in stores and logistics, aiming to improve the customer experience and compete more effectively.

Analysts suggest H&M should follow competitor Inditex's example by investing in store upgrades and logistics, even if it impacts short-term profits.

H&M is creating a more upscale shopping experience in some stores, with a curated product selection and improved amenities.

A key advantage for clothing companies is the ability to quickly adapt to changing consumer preferences. H&M is taking steps to shorten production times and improve inventory management.

H&M has closed hundreds of stores in recent years, reflecting the changing retail landscape. However, the company still boasts a healthy cash position.

Investors are closely watching Erver's performance as he steers H&M through a competitive and evolving market. His ability to deliver a clear strategy for growth and profitability will be crucial for the company's future success.