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H&M shares tumble 8% after weaker gross sales and shock CEO exit



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Folks passing a big scale signal for the excessive road garments and clothes model H&M exterior their flagship retailer on the nook of Oxford Avenue and Regent Avenue. on thirtieth March 2023 in London, United Kingdom.

Mike Kemp | In Footage | Getty Photos


Shares of Swedish retailer H&M had been down 8% at 09:05 a.m. London time on Wednesday, after the corporate introduced weaker gross sales and the shock departure of its chief govt.

H&M gross sales had been 1% decrease for 2023 in native currencies, and 4% decrease year-on-year within the fourth quarter.


The corporate has struggled to take care of gross sales development in recent times amid growing competitors, each from excessive road rivals similar to Inditex-owned Zara and from on-line fast-fashion shops.

On Wednesday, H&M reiterated earlier messaging that it’s specializing in price management and profitability.


Working revenue within the full 12 months ending Nov. 30, 2023 greater than doubled, coming in at 14.5 billion Swedish krona ($1.4 billion), up from 7.17 billion krona the 12 months earlier than. However H&M’s fourth-quarter working revenue margin slid, coming in under market expectations.

European retailer inventory had been 1.2% decrease in morning commerce.


In an sudden management shake-up on the H&M group, Helena Helmersson, who has been within the CEO position for 4 years, will likely be changed by Daniel Ervér.

In a press release, Helmersson mentioned she was stepping down with “combined emotions” and was pleased with how the agency navigated the pandemic and geopolitical challenges.


“Nevertheless, it has been very demanding at occasions for me personally,” she mentioned.

Ervér is presently the top of the group’s largest model, H&M, and has been on the firm for 18 years.


“The H&M group is in a powerful place, with a constructive profitability development and good situations to make additional enhancements in 2024,” group chair Karl-Johan Persson mentioned.

“Daniel is a reliable, skilled and revered chief and has the qualities wanted to proceed to develop the H&M group.”

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