H&M surprised investors on Wednesday by announcing the immediate appointment of Daniel Ervér as the new CEO, as the Swedish fashion retailer grapples with challenges in boosting sales amid intense market competition.
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GLOH&M surprised investors on Wednesday by announcing the immediate appointment of Daniel Ervér as the new CEO, as the Swedish fashion retailer grapples with challenges in boosting sales amid intense market competition.
Outgoing CEO Helena Helmersson explained her decision to step down from H&M, citing the highly demanding nature of the role.
As the world’s second-largest fashion retailer, H&M has faced difficulties retaining its price-sensitive customers, who are increasingly turning to the budget-friendly offerings of newcomers like Shein, in addition to facing competition from Inditex’s Zara.
The fourth-quarter operating profit margin for H&M declined from 7.8 percent in the third quarter to 7.2 percent. H&M reported on Wednesday that sales from December 1 to January 29, marking the start of its fiscal first quarter, decreased by 4%, in contrast to a 5 percent increase during the same period last year.
In terms of financials, H&M posted a fourth-quarter operating profit of 4.33 billion crowns ($415.4 million), up from 821 million a year earlier but falling short of the 4.57 billion expected by analysts in an LSEG poll.
Source: H&M
