CEO of H&M steps down in surprise move; successor named
The chief executive of Hennes & Mauritz has departed the retailer as it struggles to lift sales amid increased competition.
The Swedish fast-fashion giant said that Helena Helmersson, a 26-year company veteran, has decided to step down as CEO and leave the H&M group. Helmersson, who has served as CEO since 2020, will be succeeded by Daniel Ervér, effective immediately.
Ervér has worked within the H&M group for 18 years in various roles in different parts of the company, most recently as head of H&M, the largest brand within the H&M group. He will remain in the position in addition to serving in his new role as CEO.
“Helena is an appreciated leader that has decisively and effectively led and navigated the H&M group through a time largely marked by pandemic, geopolitical and macro-economic challenges,” said Karl-Johan Persson, chair of the H&M group.”The H&M group is in a strong position, with a positive profitability trend and good conditions to make further improvements in 2024. As Helena has now chosen to leave the CEO role, we are pleased to appoint Daniel as CEO of the H&M group today. Daniel is a competent, experienced and respected leader and has the qualities needed to continue to develop the H&M group.”
The news came after H&M Group reported that its fourth-quarter sales fell 1% (in local currencies), following two successive quarters of flat sales. Sales in December and January were down 4% compared to the previous year. The chain has struggled with falling profit margins and struggled to compete with fast-growing online budget retailers such as Shein and Temu. It also has faced intensified competion from fashion powerhouse Zara, which is part of Inditex’s.
“It is with mixed feelings that I have informed the board of directors of my decision to leave the CEO role,” said Helmersson. “I am very proud of what we together have achieved during the last years when we have navigated through pandemic, and several geopolitical and macro-economic challenges. However, it has been very demanding at times for me personally and I now feel that it is time to leave the CEO role, which of course has not been an easy decision.”
In addition to its flagship namesake brand, the H&M group includes COS, Monki, Weekday, & Other Stories, H&M Home, Arket and Afound as well as Sellpy.