Founder's grandson faces challenges at H&M

Karl-Johan Persson, CEO of H&M and grandson of the founder, is struggling to keep the Swedish fashion retailer on a growth track,

the

Financial Times

reported.

Costs are rising and demand is faltering in its core European markets, the article said.

Unlike some rivals, Mr. Persson has stubbornly refused to pass on increased input costs to consumers. He argues that H&M’s budget pricing will be rewarded in the long run with higher market share.

(Source:

Financial Times,

Sept. 26, 2011.)