The third quarter was strongly influenced by the decision to cease sales in Russia and the subsequent closure of the business.
The company Hennes&Mauritz (H&M) reported on sales in the third quarter. The profit of one of the largest fashion retailers decreased by 89%. The negative dynamics was largely due to the company's decision to leave the Russian market entirely.
"The third quarter was strongly influenced by the decision to cease sales in Russia and the subsequent closure of the business," commented Helena Helmerson, the company's CEO.
The company has decided to cut costs, which will save more than $180 million in the next quarter. The benefit of the new program should be reflected in the accounts for the second half of 2023.
H&M, which is second only to Inditex Group in terms of revenue, joined the long list of Western retailers who left the Russian market amid recent events in Ukraine. All of the chain's stores are now open again for a final sale. Officially, the cost of closing the business in Russia is estimated at about $85 million. Earlier the company also reported a decline in sales growth amid customers' desire to save money. H&M's main competitor Zara, on the contrary, increased sales in the third quarter by almost a quarter.