The logo of fashion retailer H&M.
Credit: Reuters Photo
Stockholm: H&M surprised investors on Wednesday with a new CEO, Daniel Erver, taking the role with immediate effect as the Swedish fashion retailer struggles to boost sales in a fiercely competitive market.
Outgoing CEO Helena Helmersson said she decided to step down and leave H&M, saying the role has been very personally demanding.
H&M, the world's second-biggest fashion retailer, has struggled with its price-sensitive customers going to budget-friendly newcomer SHEIN in addition to competition from Inditex's Zara.
H&M's fourth-quarter operating profit margin fell to 7.2 per cent from 7.8 per cent in the third quarter.
Measured in local currencies, H&M said on Wednesday that sales from Dec. 1 to Jan. 29 - the start of its fiscal first quarter - fell by 4 per cent, compared to an increase last year of 5 per cent.
It posted a fourth-quarter operating profit of 4.33 billion crowns ($415.4 million), up from 821 million a year earlier, but below the 4.57 billion expected by analysts in an LSEG poll.