H&M Earnings: Stock down by 11% Due to a Leadership Transition and Seasonal Challenges

No-moat Hennes & Mauritz reported stagnant sales growth in the fourth quarter of 2023 compared with the previous year. Notably, the gross margin and operating margin exhibited an encouraging uptick, reaching 53.7% and 6.9%, respectively, as opposed to the 49.8% and 1.3% figures recorded in the preceding year. Despite the improved profitability, shares are down 11% at the time of writing; we surmise investors are not happy with the announcement that Helena Helmersson is stepping down as CEO and being replaced by Daniel Ervér.