The fashion giant H&M reported a decline in sales during the holiday shopping season, and the company's stock fell as the top executive abruptly resigned on Wednesday.

Wednesday saw the abrupt resignation of H&M's top executive, as the fashion giant's stock fell as it revealed lower holiday shopping season sales.

After 26 years with the company and four years as its CEO, Helena Helmersson announced her resignation. She said she was happy of the work done in the last several years, especially navigating the COVID-19 pandemic, but that it had been quite hard at times for her personally.

Daniel Ervér, who oversaw the H&M brand and has eighteen years of experience with the Swedish clothes store, took her position. Following the announcement and news that its most recent results fell short of analyst estimates, H&M shares dropped as much as 11%. The statement coincides with the chain's growing rivalry from major players in the fashion industry like Zara and Chinese low-cost fast fashion retailer Shein.

Under Helmersson's direction, H&M initiated a reorganization plan in 2022 with the intention of lowering expenses and boosting productivity. The plan called for the elimination of about 1,500 jobs globally. At that time, a 10% operating profit margin was the target. Operating profit margin decreased to 7.2% in the final three months of 2023 from 7.8% in the preceding three months. This year, the corporation adds, its "ambition" is to maintain an operating margin of 10%. Compared to a year ago, sales decreased by 4% during the crucial Christmas shopping season, which ran from December 1 to January 29.