Low-cost trend chain H&M experiences 4th-quarter loss

STOCKHOLM (AP) — Low-cost trend model H&M stated Friday that shutting down its enterprise in Russia and Belarus had a big unfavourable impression on its outcomes, whereas will increase within the prices of uncooked supplies and freight and a powerful U.S. greenback made purchases dearer.

The Sweden-based group stated its web revenue for the yr ending Nov. 30 fell 68% whereas it reported a lack of 864 million Swedish kronor ($84 million) within the fourth quarter.

Nevertheless, though 2022 was “a turbulent yr,” within the phrases of Chief Govt Helena Helmersson, the corporate famous that total full-year gross sales elevated by 6%.

“Having left the worst of the unfavourable results of the pandemic behind us, conflict broke out in Ukraine,” Helmersson stated in an announcement. “Our resolution to wind down the enterprise in Russia, which was an necessary and worthwhile market, has had a big unfavourable impression on our outcomes.”

After Russia’s offensive in Ukraine began on Feb. 28, H&M Group first paused all gross sales in Russia, and on July 18, the corporate introduced that it was winding down the enterprise within the nation.

H&M stated that the outcomes had been impacted by one-time prices for ending the Russian operations and of a value and effectivity program. In November, the low-cost trend model stated it was lowering its world workforce by round 1,500 positions as a part of a plan to cut back prices and additional enhance effectivity.

H&M was based in Sweden in 1947. Beside the clothes retailer, the group has manufacturers like COS, Monki, Weekday, Low-cost Monday, & Different Tales, H&M Dwelling, ARKET and Afound. It counts about 4,664 shops in 77 markets and has 57 on-line markets.