The image of the child in the hoodie appeared on the British version of the retailer's online store.
People on Twitter pointed out that two other tops from the same line, one that said "survival expert" and one with images of animals, were modeled by white children.
"This image has now been removed from all H&M channels and we apologize to anyone this may have offended," the clothing company said in an apology issued on Monday.
The company removed the ad from its website, but continues to sell the hooded top online.