H&M has declared Daniel Ervér as the company’s new CEO, effected from January 31, 2023.
Daniel Ervér assumed leadership of the Swedish fashion company immediately, amid challenges in increasing sales and profitability.
Ervér has worked for H&M for eighteen years, and recently led the company’s main H&M brand, and will continue to hold in addition to his CEO position.
H&M, the second-largest listed fashion retailer in the world behind Inditex, has found it difficult to compete with Zara and the low-cost fast fashion behemoth Shein, both of which have experienced rapid sales growth.
The announcement of the leadership shift occurred with H&M’s sales decline of 4% in December and January over the prior year, which is concerning for the crucial Christmas shopping season.
Adil Shah, portfolio Manager at Storebrand in Oslo, which holds H&M shares said, “I think the market will welcome the change after digesting the numbers.”
Earlier, outgoing CEO Helena Helmersson said she had decided to leave the company after four years in the top job, adding the role has been “very demanding” and she did not have the energy to continue.