From CNBC:

H&M shares drop nearly 10% as company reports weaker sales and CEO departure. Sales for full financial year were 1% lower, and 4% lower year-on-year in December 2023 and January 2024. Competition from Zara and online fast-fashion stores has hurt sales. Operating profit for year ending Nov. 30, 2023 more than doubled, but fourth-quarter margin slid.

European retailer stock 1.2% lower in morning trade. CEO Helena Helmersson to be replaced by Daniel Ervér in unexpected leadership shake-up. Helmersson stepping down with “mixed feelings,” proud of navigating challenges but found job personally demanding. Ervér, currently head of H&M brand, has been at the company for 18 years.

Chair Karl-Johan Persson says H&M group is in a strong position and expects positive profitability trend in 2024. Analysts at UBS predict weak consumer environment based on December and January sales data, as well as a fourth-quarter profit miss, leading to short-term share price decline.



Read more: H&M shares tumble 10% after weaker sales and surprise CEO exit