Published January 27,2023
Subscribe
H&M reported on Friday an enormous drop in income in 2022, with an surprising loss within the fourth quarter because the Swedish style retailer exited Russia and confronted hovering manufacturing prices.
H&M was amongst a slew of international firms that shipped out of Russia final yr after Moscow invaded Ukraine and Western nations imposed sweeping sanctions on the nation.
“Our decision to wind down the business in Russia, which was an important and profitable market, has had a significant negative impact on our results,” chief govt Helena Helmersson stated in a outcomes assertion.
The firm was additionally hit by a traditionally robust greenback and will increase within the prices of freight and uncooked supplies.
“Rather than passing on the full cost to our customers, we chose to strengthen our market position further,” Helmersson stated.
H&M additionally handled increased power costs, which soared throughout Europe following Russia’s battle in Ukraine, and a cost-cutting programme.
The group posted a 68 % drop in web revenue in 2022 to virtually 3.6 billion Swedish kronor ($346 million).
It reported a lack of 864 million Swedish kronor ($84 million) within the September-to-November interval.
But the corporate is extra upbeat about 2023, with gross sales up 5 % within the December-January interval.
“Sales in the new financial year have started well. The external factors are still challenging, but are moving in the right direction,” Helmersson stated.
Source: www.anews.com.tr
