H&M’s Leadership Shake-Up: Will the Persson Family Reclaim Control?

Amidst a downturn, the Persson family, whose wealth is estimated at 16 billion euros by Forbes, is likely to take over the company, which has been listed on the Stockholm Stock Exchange since 1974. This is indicated by the quiet and regular purchase of the group’s shares through their holding company, Ramsbury Invest AB.

“Their rise in ownership is impressive,” observes Cédric Rossi, an analyst at the American investment bank Stifel. In four years, the holding owned by the son of the founder, who passed away in 2002, Stefan Persson, has acquired an additional 12% of H&M’s capital, increasing from 49.5% in November 2020 to 62% by November 2024.

And the pace is accelerating. Since then, the branch has purchased over 440 million euros worth of shares on the market. Including the shares held by the extended family, including the founder’s daughter, the Perssons now control 67.5% of the Swedish brand. This fuels speculation about a possible complete takeover.

For now, those involved dismiss this scenario outright. “There are no plans,” stated Karl-Johan Persson, the founder’s grandson and chairman of the board, who explained last year to Bloomberg that “we are simply buying because we believe in the company.”

Contacted by Challenges, H&M declined to comment. However, an insider considers this scenario “entirely plausible.” “At this rate, the 90% threshold that would allow the Persson family to delist could be reached within five years,” predicts Cédric Rossi. It’s worth noting that between 2015 and 2025, H&M’s stock fell by 70%, with its valuation dropping from 66 billion to 20 billion.

This operation would be advantageous for the founding family, giving them “total control over the strategy and less dependence on stock market fluctuations,” analyzes Antoine Andreani, director of research at broker XTB France. This would be a way “to move away from the short-term market vision to boost the brand’s desirability,” agrees Cédric Rossi.

Caught between its Spanish competitor Inditex (Zara), which has successfully upgraded its offerings, and the Chinese e-commerce giant Shein, which is making a rapid breakthrough, H&M, with 3,742 stores worldwide, must innovate more than ever to hope to regain its luster.