 "H&M")
H&M's top executive unexpectedly stepped down on Wednesday and the company's stock plunged as the fashion giant reported a drop in sales over the holiday shopping season.
Helena Helmersson resigned after four years as CEO and 26 years at the company, saying she was proud of the work done over the past few years, including navigating the COVID-19 pandemic, but that it has been very demanding at times for me personally.
She was replaced by Daniel Ervr, who was in charge of the H&M brand and has worked for the Swedish clothing retailer for 18 years.
"Our focus will be on offering our customers the best combination of fashion, quality, price and sustainability in an inspiring and attractive shopping environment, Ervr said in a statement.
H&M shares fell as much as 11 per cent after the announcement and news that its latest earnings missed analyst expectations.
For the last three months of 2023, operating profit margin fell to 7.2 per cent from 7.8 per cent in the previous three months. The company says its ambition is still operating margin of 10 per cent this year.
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Sales also dropped 4 per cent from December 1 to January 29 a key holiday shopping period compared with a year earlier.
H&M is facing increasing competition from Chinese low-cost fast fashion retailer Shein as well as other fashion giants like Zara.
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