H&M, the Swedish clothing retailer, unexpectedly saw its boss quit on Wednesday as the company continued to suffer a slowdown in sales.
Shares in the group dropped close to 10% to 151.74 Swedish krona (SEK) on the back of the news.
Chief executive officer Helena Helmersson said she is leaving the job after four years with immediate effect.
Helmersson told journalists the role had been “very demanding” and that she no longer had the energy to carry on.
Daniel Ervér, a company veteran who is head of the H&M brand, will take over as both CEO and president while maintaining his current role.
Sales during December and January, a key trading period for the retailer, dropped 4% year on year, the company's full-year results statement revealed.
For the 2023 financial year, which ended on 30 November 2023, sales rose by 6% to SEK236 billion (US$22.7 billion).
However, in the fourth quarter sales dropped 1% on a local currency basis, albeit with operating profit margins increasing from 1.3% in 2022 to 7.2% in 2023.
The world’s second-largest listed fashion retailer has faced pressure from rivals like Zara and discount e-commerce group Shein, as they both have reported strong sales recently.