In year 2000, Hennes & Mauritz was amongst the second-largest and most global player in the fashion retail company. Nevertheless, the new millennium brought uncertainty and challenges.
In March 2000, the first nonfamily CEO, Fabian Mansson, resigned after just two years at the helm as well as the organization issued a profits warning. In the month of September 2000, H&M’s share price dropped at $18.68, a drop of nearly 50% from the prior year. Meanwhile Gap, the planet’s leading fashion retailer with earnings of $13.7 billion, was adding 600 shops a year and growing into Europe from its U.S. base. Rolf Erikson, the replacement of Masson, impressed questions and few analysts lingered about H&M's ability to maintain its rate of growth. What will the newly designated CEO Rolf Erikson needed to do to divert the danger from Gap and restore the organization’s fortunes?
PUBLICATION DATE: June 19, 2013 PRODUCT #: 713509-HCB-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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