H&M CEO Helena Helmersson steps down after just 4 years
H&M's CEO Helena Helmersson announced her resignation yesterday, after leading the global fashion retailer for four years. In a statement released with the company's latest financial results, Helmersson said, "I am very proud of what we together have achieved during the last years when we have navigated through pandemic, and several geopolitical and macroeconomic challenges." She admitted that leaving was a tough decision but felt it was time to step down from the demanding role.
Daniel Erver appointed as new CEO
Daniel Erver (42), former head of the H&M brand, has been named as the new CEO following Helmersson's exit, who worked for 26 years at the company. The H&M brand is the largest in the group, which also includes & Other Stories and COS. At a Stockholm press conference, Helmersson (51) shared that she lacked the energy to continue as CEO and had no immediate plans for her next career move, according to Reuters.
Here's what we know about the new boss
Erver has been a part of H&M group for 18 years, of which the last four years were spent as head of H&M brand. Throughout his career, he was responsible for merchandising at H&M in Germany and the US, served as Country Manager for H&M Sweden, and was the Purchasing Manager for H&M later on. He now faces a dilemma. Either raise prices and lose ground to budget fast-fashion brands, or slash prices and risk falling profit margins.
H&M's financial results and challenges
H&M's operating profit margin dipped to 7.2% in Q4 of its financial year, spanning September to November, a decrease from 7.8% in the previous quarter. Although sales rose in 2023, they fell 4% in the last two months, including the crucial Christmas season. Helmersson cited high inflation and interest rates as factors impacting consumer purchasing power. The company has also struggled with supply chain adjustments and recently faced criticism over a controversial school uniform ad in Australia.
