Hennes & Mauritz AB reported a 32 percent decline in fourth-quarter profit as the company continued to invest in an overhaul, noting it is seeing improvements from the efforts and has reined back on discounting.

Profit for the quarter was 3.54 billion Swedish kronor, or $390 million, down for the period at the company, while operating profit stood at 4.3 billion kronor, a 10 percent decline.

“It has been a challenging year for H&M group and the industry, but after a difficult first half, there are signs the company’s transformation efforts are beginning to take effect,” CEO Karl-Johan Persson said in a statement.

This story was reported by WWD and originally appeared on WWD.com. To read the full story, visit WWD.com.