H&M chief executive Helena Helmersson has resigned following low profits in the business.
According to the Financial Times, the Swedish fashion group has been failing to increase its profits for over a decade.
This is due to the high competition in fast fashion. Its competitors – Zara, owned by Inditex; and Shein, owned by Chinese entrepreneur Chris Xu – are thriving while it sinks.
Helmersson will be replaced by Daniel Ervér, who has been with the company for 18 years.
“The H&M group is in a strong position, with a positive profitability trend and good conditions to make further improvements in 2024.
“Ervér is a competent, experienced and respected leader and has the qualities needed to continue to develop the H&M group,” Karl-Johan Persson, H&M’s chair and a former chief executive told the Financial Times.
Helmersson’s departure was influenced by several factors, including the loss the business suffered during Covid-19.
“A lot of unexpected things have happened. I feel it’s the right step to take. There has been a lot of hard work to get the company to a better place when it comes to profitability, cash flow and sustainability.
“Now we need to work more on sales activities and profitable growth,” she told the international publication.
Helmersson has been with the retailer for 26 years.
In other news, Country Road Group has temporarily closed its showroom. This means Country Road, Witchery, and Trenery brands will be temporarily closed for sourcing until further notice.