H&M CEO abruptly resigns due to ‘very stressful’ work hours

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

“I am very proud of what we have achieved together over the past few years, navigating the pandemic and various geopolitical and macroeconomic challenges,” she said in a statement released along with the company’s latest financial results.

“However, it has been a very difficult time for me personally and I feel that the time has come to step down as CEO, which of course was not an easy decision,” he added.

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

According to Reuters, Helmersson told a news conference in Stockholm that he does not have the strength to continue as CEO, adding that he is still unsure of his next career move.

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

Sales rose in fiscal 2023 but fell 4% in the last two months, including the crucial Christmas period, compared with the previous year.

H&M shares fell sharply following the announcements, falling more than 9% in afternoon trading in Stockholm. The stock is down 14% since the start of 2024.

“For many consumers, the year was marked by a decline in purchasing power due to high inflation and high interest rates,” Helmersson said when announcing the results. “The fourth quarter began with unusually warm weather in several of our important European markets. Starting in mid-October, sales rebounded as fall weather returned to normal.”

In addition to difficult trading conditions, the retailer has also faced the challenge of overhauling its supply chains (it said in August it was phasing out its operations in Myanmar) and a marketing misstep.

Earlier this month, the company was forced to remove an advertisement for school uniforms in Australia after social media users complained it sexualized minors. “We deeply regret the offense caused,” H&M told CNN.

The ad, which was captured and then deleted by several social media users, featured two primary school girls dressed in school uniforms with the slogan “Make those heads turn with H&M back-to-school fashion.”