H&M Founding Family Expands Ownership as Retailer Struggles to Revive Growth

Stockholm — The family behind H&M is steadily expanding its ownership of the fashion retailer as the company continues to contend with sluggish sales growth and intense competition from rivals including Shein and Zara.

Ramsbury Invest, the investment company primarily owned by Sweden’s richest person Stefan Persson, has bought 36.8 million H&M shares so far this year, according to regulatory filings reviewed by Reuters.

The Persson family and related entities held more than 68% of H&M at the end of August, compared with 49.5% at the beginning of 2021.

The growing stake has fueled speculation that the family could eventually pursue a move to take H&M private. Under Swedish rules, shareholders with a 90% holding in a company can force the purchase of the remaining shares.

H&M has not indicated that a buyout is in progress. A spokesperson for Ramsbury Invest said the Persson family remains committed to H&M as long-term owners and has historically increased its stake in the company.

The retailer has been trying to improve its performance under CEO Daniel Erver, who took over in January 2024. His mandate has included boosting profitability and strengthening H&M’s brand, although the company has yet to deliver a sustained recovery in sales.

H&M’s first-quarter sales fell 1%, while second-quarter sales were flat. Analysts expected only modest sales growth in the third quarter, with the company’s results scheduled for Thursday.

The retailer continues to face competition on several fronts. Ultra-low-cost online platforms such as Shein have increased pressure on traditional fashion retailers, while Inditex, the owner of Zara, remains a major rival.

H&M’s stock has fallen by more than half since reaching a peak in 2015, increasing pressure on the company to show that its turnaround strategy can restore growth.

The family’s expanding ownership has also led some market observers to speculate about a longer-term buyout plan. One analyst cited by Reuters expects the Persson family could take H&M private by 2030.

Such a transaction would require the family to acquire considerably more shares before reaching the 90% threshold required under Swedish law.

H&M’s upcoming quarterly report could give investors another indication of whether its turnaround is beginning to gain traction. For now, the family’s rising stake and the retailer’s ongoing sales challenges remain closely watched by the market.