H&M Founding Family Raises Stake to 70% as Ownership Consolidates

The Persson family increases its control in H&M's capital. The members of the founding saga of the fashion group, number two in the world by turnover in the mass retail segment, have reached 70% of the company's capital and 85% of the voting rights. The progressive takeover of the Swedish group's shares by the Perssons could lead to H&M ceasing to be a listed company.

Since 2016, the family has invested SEK 63 billion (€5.8 billion) in repurchasing H&M shares through the family hólding, Ramsbury Invest, raising its control over the group's capital from 35.5% to 64% in this period. Through other investment vehicles, the Persson's stake rises to 70%, according to Bloomberg.

If they continue at their current rate of investment, with dividends reinvested in company securities, the family could reach 90% of the shares within two years. This would allow the Perssons to apply for a delisting of the group, chaired by Karl-Johan Persson.

The company is going through a bad patch on the stock exchange, mainly due to equally weak results in recent times. So far this year, the group's shares on the stock exchange have fallen 7.7% to 137 kronor per share at the close of trading yesterday.

The company has reduced its stock market value by 7.7% so far this year.

In the first quarter of the current fiscal year (period ended February), H&M halved its net income and slowed sales growth to just 3.1% year-on-year. Discounts, exchange rates, an unstable geopolitical climate and higher investments took their toll on H&M's results, which has been immersed in a restructuring process for several years in order to recover its market position.

"We estimate that the overall negative impact of these elements will be significantly lower in the second quarter than in the first quarter," Danier Ervér, the group's CEO since 2024, said at the time of the presentation of its quarterly results.

In FY2024, the company had managed to correct the pace, closing the year with a profit of SEK 11,584 million, up 32.9% year-on-year, and sales of SEK 234,478 million, down 0.6%. However, in the period from October to December, the company grew by 4.2% to SEK 4,084 million.

The group's restructuring plan calls for the closure of 190 stores, especially in markets where the company is already more established, after it reduced its network by 116 stores globally in 2024.