In a surprising move, H&M, the world’s second-largest fashion retailer, has announced the appointment of Daniel Erver as its new CEO, effective immediately. The decision comes as H&M faces challenges in boosting sales within a highly competitive market. Outgoing CEO Helena Helmersson cited the demanding nature of the role as her reason for stepping down.
H&M’s struggle against competitors like SHEIN and Zara has been evident, leading to a decline in its fourth-quarter operating profit margin from 7.8% to 7.2%. Additionally, the company reported a 4% decrease in sales measured in local currencies for the period from Dec. 1 to Jan. 29, marking the start of its fiscal first quarter. This is a significant contrast to the 5% increase reported during the same period the previous year.
Also Read : The 69th Filmfare Awards:Blockbuster Wins and Celeb Showdown, Unveiling the Shocking Highlights
The fourth-quarter operating profit reached 4.33 billion crowns ($415.4 million), surpassing the 821 million recorded a year earlier but falling short of the 4.57 billion expected by analysts in an LSEG poll. As H&M grapples with shifting consumer preferences, Erver takes on the leadership role to navigate the company through these challenges and rejuvenate its market position.
Also read : ‘Fighter’ box office Day 6: Hrithik Roshan and Deepika Padukone’s ‘Fighter’ Soars to Rs 135 Crore in 6 Days