Operating profit at H&M decreased 62% in the first quarter of 2018, following its biggest sales drop on record in the fourth quarter of 2017. The retailer is increasingly losing out to fast-fashion competitors such as Zara and ASOS, which have sped up their supply chain to stay on top of trends. The company now has a massive inventory problem with over $4 billion worth of unwanted clothing. H&M was once considered to be the king of fast-fashion retail, churning out cheap and fashionable clothing to a willing audience.