H&M reshuffles board as chairman stands down

H&M has reshuffled its board as chairman Stefan Persson stands down after 20 years in the role. CEO Karl-Johan Persson, son of Stefan, will assume the role of chairman and be replaced by COO Helena Helmersson.

Helmersson, who joined H&M in 1997 as an economist and who has held various senior roles across the business, takes over as CEO from today. She had been COO for a year. Stefan Persson's resignation will be formalised at the AGM on 7 May.

Stefan Persson said of the changes: “Karl-Johan and the team have done an amazing job to secure the future of the H&M group. I am fully convinced that he will do an excellent job also as Chairman of the Board. I believe strongly in Helena, who with her long and solid background within the H&M group, now takes over as CEO.”

Karl-Johan Persson

Karl-Johan Persson added: ”I feel confident in handing over the CEO role to Helena, who is an experienced and great leader who embodies our values. Helena will continue to work on the plan that we have adopted for 2020 and onwards. I am very proud of the tremendous work that our colleagues have done during these years and the fact that together we have laid the foundation for a bright future.

"I am very happy that Stefan has asked me to actively engage in ownership matters for the family’s private company Ramsbury Invest and that he will propose that I take over as Chairman of the Board of H&M Hennes & Mauritz AB. Provided that the AGM approves the proposal, I will be happy to assume the chairmanship." H&M was founded by Karl-Johan's grandfather Erling Persson in 1947.

Helena Helmersson

The news come as the business announced that group net sales increased by 11% to SEK 232,755 m (£18.57 billion) in the 2019 financial year, which it attributed to more full-price sales, lower markdowns and increased market share.

Profit after financial items increased by 11% to SEK 17,391 m, while gross margin was 52.6%, which is broadly flat year-on-year.

Employees are now set to benefit from the strong performance, Karl-Johan Persson confirmed: "This positive performance shows that we are on the right track. I would like to thank all employees of the H&M group for their fantastic work and commitment over the past year. It is pleasing to note that the increase in full-year profits means we can contribute a further SEK 86 million to the H&M Incentive Program, which is for all employees of the H&M group."

The business would continue with its on-going investment in logistics and digitisation, he added: "Among other things, we have invested in digitalisation, a more efficient supply chain – including new logistics centres and logistics systems, and in tech infrastructure, advanced analytics and AI. We are now seeing multiple positive effects of these initiatives, providing resources and support for our continued transformation work."