H&M pulls out of Russia

Now, H&M has also disappeared: the Swedish group is abandoning its stores in Russia. But first they should reopen for a short time. The fashion group Hennes & Mauritz (H&M) is closing its activities in Russia. In the current situation, it considers it “impossible” to continue the activity in Russia, said Monday in Stockholm the boss of H&M, Helena Helmersson. It was therefore decided to initiate the process of closing the Russian activity. The group justified its decision by operational challenges and an unpredictable future. Financially, the withdrawal will be felt in the third quarter results. Management expects the entire liquidation process to incur one-time costs of approximately SEK 2 billion (€190 million) , about half of which will impact cash flow. The costs also include a write-off of unrealized foreign exchange gains of SEK 353 million. First, H&M plans to temporarily reopen its stores in Russia to sell remaining stock. Due to the war in Ukraine, H&M stopped all sales in Russia in early March. The group has been present in the country since 2009. H&M shares rose slightly in early trading.

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