H&M announces new CEO as Q4 sales dip

H&M has today (31 January) announced the appointment of its new CEO, Daniel Ervér, as the group struggled to maintain profitability in Q4 2023. 

Former CEO Helena Helmersson has decided to step down after four years, saying that the role has been personally demanding, although leaving the position has not been an “easy decision”.

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

“I have appreciated the great commitment and support of all colleagues and from Karl-Johan and the board during my time as CEO. I continue to have a strong belief in the company. We have strong brands, a unique corporate culture and high ambitions in sustainability. I will now ensure a good handover, and think about my next step.”

Ervér has worked in the H&M group for 18 years, most recently as head of H&M. He started as a summer trainee in 2005 and then became a controller in 2006. Since then, Daniel has been responsible for merchandising at H&M in Germany and the US, country manager for H&M Sweden, purchasing manager for H&M and responsible for H&M women and men. 

Regarding his new role, he said: “I am both honoured 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. Our focus will be on offering our customers the best combination of fashion, quality, price and sustainability in an inspiring and attractive shopping environment.”

The announcement comes as the retailer revealed Q4 sales decreased by 4% in local currencies in the period between 1 December 2023 and 29 January 2024 compared with the same period the previous year. 

However, for the full-year group’s revenues increased 6% to SEK 236,035m (£17.8m). Operating profit including allocation to the H&M Incentive programme (HIP) increased to SEK 14,537m (£1.1m), corresponding to an operating margin of 6.2%. 

Regarding the trading update, Helmersson said: “Operating profit has been positively impacted by a stronger gross margin, the cost and efficiency programme, and good cost control. The H&M group is taking important steps towards the company’s ambitious climate goals. Preliminary results indicate that greenhouse gas emissions decreased by more than 20 percent in 2023 compared with the 2019 baseline.”