STOCKHOLM (Reuters) – H&M surprised investors on Wednesday by announcing the appointment of a new chief executive, Daniel Erver, with immediate effect, as the Swedish fashion retailer strives to boost sales in a fiercely competitive market.
The outgoing general director, Helena Helmersson, said she had decided to step down from her position and leave the group, explaining that her mission had been very difficult on a personal level.
H&M, the world’s second largest fashion company, faces intense competition from Spain’s Inditex, owner of Zara, and from a price-sensitive clientele who are turning in particular to the Chinese group Shein.
H&M’s fourth-quarter operating profit margin fell to 7.2%, from 7.8% in the third quarter.
H&M said its sales, calculated in local currencies, fell 4% between December 1 and January 29, while they increased 5% last year.
The Swedish group’s operating profit stood at 4.33 billion crowns (384.14 million euros), compared to 821 million a year earlier, while analysts polled by LSEG expected an average of 4.57 billion. of crowns.
(Reporting by Marie Mannes in Stockholm and Helen Reid in London, by Dagmarah Mackos, edited by Claude Chendjou)
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