H&M retail chain hires new chief executive as profits slip behind expectations

31 January 2024 , 11:49

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H&M has appointed a new boss after profits fell below expectations (Image: 2024 PA Media, All Rights Reserved)

H&M has appointed a new boss as the fashion giant's annual profits failed to meet expectations.

The Swedish retail chain announced that Helena Helmersson is stepping down as CEO. Helmersson, who held the position for four years, expressed "mixed feelings" about her departure and admitted the role was "very demanding at times".

Daniel Erver, who has been with the group for nearly 18 years in various roles, will replace her. Karl-Johan Persson, chair of the H&M group, thanked Helena for her valuable contributions during a challenging period.

He said: "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."

Helmersson said: "It is with mixed feelings that I have informed the board of directors of my decision to leave the CEO role. 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."

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H&M has revealed a pre-tax profit of 8.7 billion Swedish Krona (£660 million) for the year to November 30, slightly below market expectations. The retailer reported on Wednesday that net sales grew by 6% to 236 billion Swedish Krona (£17.9 billion) for the year.

However, it also noted that sales are 4% lower for the two months to January 29 this year, after the end of the previous financial year.

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Lawrence Matheson