STOCKHOLM, Sweden — After the global financial crisis and through 2016, Hennes & Mauritz AB dominated Sweden’s main share index. But after a selloff that started last year, the fashion retailer has slipped from number one to number seven.
A few years back, H&M’s weighting in Sweden’s main share index was about 12 percent. As of February 16, that weighting had fallen to 5.3 percent. The company has lost about 17 percent of its value this year, with the shares falling more than 44 percent since the end of 2016.
As investors sold off shares in the Swedish fashion retailer, H&M has had to give up its place at the top of the corporate ladder to Atlas Copco AB, a compressor manufacturer.
Investors have been offloading H&M shares over doubts it can turn things around after sales slumped at the end of last year. Shareholders say they’re worried management isn’t doing enough to address the issues dragging down its core brand.
By Niklas Magnusson; editors: Jonas Bergman and Tasneem Hanfi Brögger.