Speculation over private takeover swirls as H&M founding family increases stake

The family behind H&M is slowly increasing its stake in the Swedish fashion group, sparking speculation that it could eventually take the retailer private amid continued turnaround efforts.

The Persson family’s Ramsbury Invest holding 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 cited by Reuters.

The family and related entities owned more than 68 percent of H&M at the end of August, up from 49.5 percent at the start of 2021. Under Swedish rules, shareholders with a 90 percent stake can prompt the purchase of the remaining shares.

Reuters said Ramsbury Invest declined to comment on plans to take H&M private, saying the Persson family “believes in the company, are long-term owners and have historically increased their ownership over time".

The increased stake comes as H&M continues to work to improve its performance. In its latest results, covering June to August, sales rose 0.3 percent year-on-year to 57.2 billion Swedish kronor, while operating profit increased 22.9 percent to 6.04 billion kronor, supported by a higher gross margin and lower operating costs.

CEO Daniel Ervér said summer collections were well received, despite disruption to European logistics and global supply chains impacting sales. The retailer also warned that greater markdowns in the fourth quarter would impact earnings.