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H&M Appoints New CEO in Surprise Move as Profit Margin Falls 

H&M logo is seen on a shop in Riga, Latvia January 30, 2020. (Reuters)
H&M logo is seen on a shop in Riga, Latvia January 30, 2020. (Reuters)
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H&M Appoints New CEO in Surprise Move as Profit Margin Falls 

H&M logo is seen on a shop in Riga, Latvia January 30, 2020. (Reuters)
H&M logo is seen on a shop in Riga, Latvia January 30, 2020. (Reuters)

H&M surprised investors on Wednesday with a new CEO, Daniel Erver, taking the role with immediate effect as the Swedish fashion retailer struggles to boost sales in a fiercely competitive market.

Outgoing CEO Helena Helmersson said she had decided to step down and leave H&M, saying the role has been very personally demanding.

The world's second-biggest listed fashion retailer after Inditex, H&M is aiming to reach an operating margin of 10% this year and has focused on profitability rather than cutting prices.

But H&M has struggled with its price-sensitive customers going to budget-friendly newcomer SHEIN, in addition to competition from Inditex's Zara.

H&M's fourth-quarter operating profit margin fell to 7.2% from 7.8% in the third quarter

Measured in local currencies, H&M said on Wednesday that sales from Dec. 1 to Jan. 29 - the start of its fiscal first quarter - fell by 4%, compared to an increase last year of 5%.

It posted a fourth-quarter operating profit of 4.33 billion crowns ($415.4 million), up from 821 million a year earlier but below the 4.57 billion expected by analysts in an LSEG poll.

The board of H&M proposed an unchanged dividend of 6.50 crowns per share, and said it would ask for authorization to buy back the group's own B shares.

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Fashion

Dolce&Gabbana Unveils Luxury Boutique, Café at Bujairi Terrace in Saudi Arabia’s Diriyah

The brand center, one of Dolce&Gabbana’s largest worldwide, seamlessly blends Italian elegance with traditional Najdi architectural heritage. SPA
The brand center, one of Dolce&Gabbana’s largest worldwide, seamlessly blends Italian elegance with traditional Najdi architectural heritage. SPA
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Dolce&Gabbana Unveils Luxury Boutique, Café at Bujairi Terrace in Saudi Arabia’s Diriyah

The brand center, one of Dolce&Gabbana’s largest worldwide, seamlessly blends Italian elegance with traditional Najdi architectural heritage. SPA
The brand center, one of Dolce&Gabbana’s largest worldwide, seamlessly blends Italian elegance with traditional Najdi architectural heritage. SPA

Dolce&Gabbana, the Italian luxury fashion brand, opened a new 1,500-square-meter luxury center in Saudi Arabia’s Diriyah, The City of Earth, featuring a boutique and café, DG Caffè. The brand center, one of Dolce&Gabbana’s largest worldwide, seamlessly blends Italian elegance with traditional Najdi architectural heritage, enhancing the vibrant atmosphere of Bujairi Terrace—Diriyah's premier fine dining destination and a centerpiece of Diriyah Company's urban development project.

Dolce&Gabbana collections—including clothing, accessories, fine jewelry, watches, beauty, and home decor--are showcased on bespoke displays framed by a dynamic ceiling system that amplifies the sense of space. The boutique features an exclusive Abaya section, showcasing Dolce&Gabbana's dedication to honoring and celebrating local cultural traditions.

Drawing inspiration from Italy’s rich culinary tradition, DG Caffè at the heart of the boutique features a carefully curated menu tailored to Saudi tastes.

"We are excited to unveil Dolce&Gabbana's new boutique and café that will add an additional touch of luxury to the vibrant setting of Bujairi Terrace, our premier dining and retail destination,” said Diriyah Company group chief executive Jerry Inzerillo.

“As we progress on our journey to create the world’s greatest gathering place and a center point of cultural tourism—one that will feature more than 1,000 retail outlets and dining concepts spanning 566,000 square meters—we invite global business partners to join us on this remarkable journey," Inzerillo said.

Since its opening, Bujairi Terrace and the UNESCO World Heritage Site of At-Turaif have welcomed over 2 million visits, with tourists and locals alike drawn to world-class cultural, dining, and retail experiences in a historic setting.

Diriyah is a city within a city and a premier live-work-play destination that will be home for over 100,000 residents. Under transformation by Diriyah Company, Diriyah is projected to attract 50 million annual visits by 2030, driven by its world-class living, retail, hospitality, and cultural offering that will serve as a benchmark for future retail and lifestyle development.