How Stefan built the fortune
Stefan Persson's wealth is rooted in H&M, the clothing company his father, Erling Persson, opened in 1947 as a single women's wear shop called Hennes in Västerås, west of Stockholm. Erling had been inspired by large American stores selling affordable clothing in volume. The business added men's and children's clothing after buying the hunting and fishing retailer Mauritz Widforss in 1968, which gave the company its full name, Hennes & Mauritz. It listed its shares on the Stockholm stock exchange in 1974, while the family kept control through shares with stronger voting rights.
Stefan became chief executive in 1982 and led H&M through its expansion beyond Scandinavia. Under his leadership the company opened stores across Germany, which became its biggest market, and then throughout Europe. It kept its own design teams in Stockholm while outsourcing manufacturing to independent suppliers in Asia and Europe, a model that allowed it to bring new styles to stores quickly and at low prices.
In 1998 Stefan moved from chief executive to chairman, a role he held until 2020. During that period H&M entered the United States in 2000, followed by Asia, the Middle East and Latin America, and launched online sales in many markets. The family steadily increased its holding over the years by buying additional shares, so that its control of the company is stronger today than at the time of the listing.
H&M's approach of combining in house design with low prices and fast stock rotation helped it become one of the largest clothing retailers in the world. It also experimented with collaborations between famous designers and its mass market stores, beginning with Karl Lagerfeld in 2004, which drew long queues and wide media attention. In recent years the company has faced tougher competition from online rivals and has closed some stores while investing in digital sales and logistics.
Companies and holdings
The Persson family's main holding is its stake in H&M, held largely through the family company Ramsbury Invest and personal holdings. The H&M group includes several brands:
- H&M and H&M Home.
- COS, a higher priced brand launched in 2007.
- Weekday and Monki, brought in through the purchase of the Swedish company FaBric Scandinavien.
- & Other Stories, launched in 2013, and Arket, launched in 2017.
Outside the retailer, Stefan Persson owns real estate in Sweden and abroad, including a large country estate in Wiltshire, England, around the village of Ramsbury. The family has also invested in property in central Stockholm and other European cities.
The family has repeatedly bought more H&M shares when the price fell, signalling confidence in the company and gradually increasing its share of the capital and votes.
Early life and career
Stefan Persson was born in Stockholm in 1947, the same year his father opened the first shop. He grew up as the business expanded across Sweden and studied at Stockholm University, where his subjects included economics. As a young man he spent time in London, which was then a centre of youth fashion and retail innovation.
He joined the company formally in 1972 and worked in several parts of the business before becoming chief executive. In 2009 his son, Karl-Johan Persson, became chief executive, and in 2020 Karl-Johan took over from Stefan as chairman. Stefan has remained on the board and continues to be the family's senior figure, while the company is run by professional managers. He is known for his reserved manner and avoids most public appearances.
Philanthropy and public life
The family's charitable work runs mainly through foundations. The Erling Persson Foundation, set up in memory of the company's founder, supports education, research, medical science, culture and sports, mostly in Sweden. It has been a major donor to the Stockholm School of Economics, including the funding of new facilities, and has supported fashion and design education.
The H&M Foundation, created by the company and the family in 2013, funds projects on education, water access, gender equality and circular fashion. Like other large clothing retailers, H&M has faced criticism over labour conditions at supplier factories, environmental impact and fast fashion, and it publishes sustainability reports and supplier lists in response. Stefan Persson rarely comments on these issues personally, leaving public statements to the company's leadership.