H&M CEO Exit Triggers 8% Share Drop

H&M shares dropped nearly 10% following weaker sales and the unexpected departure of its CEO, Helena Helmersson, who will be replaced by Daniel Ervér. The company reported a 1% decrease in sales for the full financial year and a 4% drop year-on-year in December 2023 and January 2024. Despite a doubling of operating profit for the full year, H&M's fourth-quarter operating profit margin fell below market expectations. The retailer's struggles to maintain sales growth amid increasing competition have led to concerns about the weak consumer environment and higher capital expenditure expectations, impacting its stock prices.