True, defacing other’s property is criminally wrong. True, H&M is a popular store for many Jewish shoppers. True, they are therefore advertising to their market.
HOWEVER, the section of the market living in the area of this particular advertisement is not likely to buy, or to appreciate having to walk past with eyes averted, the particular styles being advertised.
An ad like this in a neighborhood like this is not a good fit. It doesn’t help the company’s image. It’s not designed to create new customers within the target area (other than the people who already dress like that). Why not showcase the more modest styles that they carry, which the frum crowd does buy?
A previous, similar ad there suffered the same fate. What was the reaction of the advertiser then? Maybe it wasn’t H&M, but shouldn’t that have made any advertiser wary? If they are going to spend their money in this neighborhood, spend it wisely. Let everybody benefit. The store will get new or continued customers, the frum shoppers have a different shopping venue, and the bochrim can concentrate on studying Torah instead of possibly landing themselves in court.