H&M CEO suddenly resigns after experiencing “very difficult” working hours

London (CNN) — Helena Helmersson announced her resignation as CEO of H&M on Wednesday, in a decision that brought an abrupt end to her four-year tenure and a surprise change in leadership at one of the world’s largest fashion retailers.

“I am extremely proud of what we have achieved together over the past few years, while facing a pandemic and various geopolitical and macroeconomic challenges,” he said in a statement released alongside the company’s most recent financial results.

“However, this has been a very difficult time at work for me personally at times and I feel the time has come to step down as CEO, which was certainly not an easy decision,” he said.

Helmersson, who left H&M after working at the company for 26 years, was replaced by Daniel Erver, who recently took over as head of the H&M brand, the group’s largest brand. Its other brands include Other Stories and COS.

According to Reuters, Helmersson told a press conference in Stockholm that he did not have the energy to remain as CEO, adding that he was still unclear about his next career move.

H&M’s operating profit margin fell to 7.2% from 7.8% in the fourth quarter of its fiscal year (covering the period from September to November).

Sales grew in fiscal 2023, but declined 4% in the last two months, including the crucial Christmas period, compared to last year.

H&M shares tumbled after the announcements and were down more than 9% in afternoon trading in Stockholm. The stock is down 14% since the beginning of 2024.

“For many consumers, this has been a year of low purchasing power due to high inflation and high interest rates,” Helmersen said in announcing the results. “The fourth quarter began with unusually warm weather in many of our key European markets. “Starting in mid-October, sales improved as fall weather returned to normal.”

In addition to tough trading conditions, the retailer is also grappling with the challenge of realigning its supply chains (in August it said it would phase out its operations in Myanmar) and a marketing mistake. Used to be.

Earlier this month, it was forced to remove a school uniform advertisement in Australia after social media users complained it sexually exploited minors. “We deeply regret the offense it has caused,” H&M told CNN.

The ad, which was captured by several social media users before being removed, featured two elementary school girls wearing school uniforms, with the tagline “Those with H&M’s back-to-school fashion.” Attract the attention of.”