On Wednesday, Helena Helmersson resigned as CEO of H&M. Daniel Ervér (r.) takes over her job. picture alliance / TT NEWS AGENCY | Samuel Steen/TT
Change in leadership at H&M: CEO Helena Helmersson unexpectedly leaves the fashion group. Daniel Ervér, who has worked for the company since 2005, will now take her place.
The background to the personnel changes is likely to be declining sales figures and falling profitability, reports “Reuters”.
Ervér doesn’t expect easy times as managing director at H&M: the competition has long since overtaken the company.
The CEO of the Swedish H&M Group, Helena Helmersson, has unexpectedly resigned. As the fashion group announced on Wednesday, the manager is leaving the company after a 26-year career, in which she most recently served as managing director for four years.
“We value Helena as a leader who led the H&M Group decisively and effectively through a period largely characterized by pandemics, geopolitical and macroeconomic challenges,” the Stockholm-based company wrote in a statement Press release.
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Daniel Ervér will now take Helmersson’s place. He has held various positions in the group, which includes brands such as Cos, Weekday and Monki, since 2005. The 42-year-old will retain his previous position as head of the H&M label as the new CEO.
H&M falls short of sales targets and loses touch with the competition
The change in leadership comes as a surprise, as the news agency “Reuters“ reported. The background to the personnel changes is likely to be declining sales figures and falling profitability in the past few months. Sales have fallen by four percent since December 1st, compared to an increase of five percent in the same period last year. The group also significantly missed a stock market forecast from the London Stock Exchange Group, according to which H&M would achieve earnings of around 405.5 million euros in the fourth quarter of 2023, at 384.2 million euros.
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In the same quarter, the profit margin also fell from 7.8 to 7.2 percent, writes “Reuters”, citing official H&M figures. Of the total sales, after deducting the costs of selling the products, the remaining profit fell by 0.6 percent. While a margin of ten percent was previously the goal, after the sobering values it is now only a “guideline,” according to “Reuters”.
As managing director of the world‘s second-largest fashion manufacturer H&M, Ervér doesn’t expect easy times. The fashion house is lagging behind its biggest competitor, Zara parent Inditex, and low-cost retailer Shein. Unlike H&M, the companies have seen a sharp increase in sales recently, according to Reuters.
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