H&M retailer's annual profit fell 68% after leaving Russia and Belarus
At the end of 2022, the annual profit of the H&M retailer after leaving Russia and Belarus amounted to $350 million, a decrease of 68% compared to the previous year. The company curtailed business in Russia last summer
Swedish retailer H&M, which also owns the eponymous chain of stores and brands COS and Monki, has published financial statements for 2022. Thus, according to the data, the company's net profit following its results fell by 68% and amounted to 3.6 billion Swedish kronor ($350 million).
“Leaving behind the most severe negative consequences of the pandemic, Ukraine began <...> [“military special operation”* of Russia]. We quickly decided to suspend sales in the affected countries, and then to completely phase out our business in Russia and Belarus. Our decision to stop doing business in Russia, which was an important and profitable market, had a significant negative impact on our results,” CEO Helena Helmersson commented on the results of the retailer
According to the report, in the fourth quarter of 2022, when the retailer finally curtailed its business in Russia, the company received a loss of $84 million. However, the company's total sales for the year increased by 12% (by 6% in local currencies) and amounted to $22 billion .
H&M Group, which has been operating in Russia since 2009, suspended sales in March 2022 amid a “military special operation” in Ukraine. The retailer announced its withdrawal from Russia on July 18, held a final sale in August, and announced in early October that it had begun closing Russian stores.
Earlier it was reported that, according to the annual report, the LVMH conglomerate lost €210 million in 2022 due to the sale of the Sephora cosmetics chain in Russia to local top management. At the same time, the company's revenue reached a record and amounted to €79 billion, which is 23% higher than in 2021. The net profit of the conglomerate amounted to €14 billion.
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