H&M surprises market with CEO shakeup

Jan. 31 (UPI) -- European retailer H&M surprised outsiders with the resignation of CEO Helena Helmersson on Wednesday after weak sales numbers over the previous fiscal year.

H&M said Daniel Erver will take over as CEO as well as president, for Helmersson, who has led the Swedish-based H&M for the past four years.

"I have spent almost my entire professional life in the H&M group and I am very grateful to have had the opportunity to work in many different parts of the business, in different countries and in different roles," Helmersson said in a statement. "It is with mixed feelings that I have informed the board of directors of my decision to leave the CEO role."

Erver has worked for the company for 18 years. He had served as head of H&M, the largest brand of the H&M group.

"I am both honored and very happy for the board's confidence and motivated and humbled by the task. Together with all committed colleagues, we will continue to create unbeatable value for our customers and profitable growth," Erver said. "Our focus will be on offering our customers the best combination of fashion, quality, price and sustainability in an inspiring and attractive shopping environment."

Helmersson's surprise departure comes after she worked to keep the stores profitable despite encroaching online competition and new brick-and-mortar competitors.

H&M recently reported sales in 2023 sales were 1% off from the previous year and 4% down in January year-to-year. Stocks tumbled 12% and the announcement of the sales, according to CNBC.

"The H&M group is in a strong position, with a positive profitability trend and good conditions to make further improvements in 2024," said H&M group board chair Karl-Johan Persson in a statement. "Daniel is a competent, experienced and respected leader and has the qualities needed to continue to develop the H&M group."