Are we really surprised that another brand is failing so hard? American Eagle, Abercrombie, Hollister, American Apparel, Old Navy, the magnificently horrible Urban Outfitters, and now H&M.
I don't believe any of their apologies. These items have to get approved by several layers of people, I suspect mostly white people who are simply trying to jump on the latest trend and appeal to their mostly white customer bases. This sweatshirt was intended to get white people to laugh or "buy it for ironic purposes." It is all bullshit.
When I was in high school and briefly in college, I worked at Hollister for about two years. In that time, the District Manager would always try and get me to wear some fucked up borderline racist graphic t-shirt. I was told once by my store manager that the reason they put me near the front of the store is that I "looked intimidating" to prevent white kids from stealing. I would always reply, no one looks intimidating in Hollister apparel. Particularly when you wearing "great fitting ripped jeans."