Low cost vogue chain H&M reported a fourth-quarter loss

STOCKHOLM (AP) – Low cost vogue model H&M mentioned Friday that the shutdown of enterprise in Russia and Belarus had a big damaging impression on its outcomes, whereas uncooked materials and freight prices rose and a powerful U.S. greenback made purchases costlier. .

The Sweden-based group mentioned its internet revenue fell 68% for the 12 months ended Nov. 30 and it reported a lack of 864 million Swedish kroner ($84 million) within the fourth quarter.

Nonetheless, though 2022 was “a turbulent 12 months”, within the phrases of chief government Helena Helmerson, the corporate famous that general full-year gross sales elevated by 6%.

“With the damaging results of the pandemic behind us, struggle broke out in Ukraine,” Helmerson mentioned in an announcement. “Our choice to discontinue enterprise in Russia, which was an necessary and worthwhile market, had a big damaging impression on our outcomes.”

After Russia’s invasion of Ukraine started on February 28, H&M Group first stopped all gross sales in Russia, and on July 18 the corporate introduced it was closing enterprise within the nation.

H&M mentioned the outcomes have been impacted by one-time prices to wind down Russian operations and a price and effectivity program. In November, the low-cost vogue model mentioned it was chopping its world workforce by about 1,500 positions as a part of plans to chop prices and enhance effectivity.

H&M was based in 1947 in Sweden. Moreover clothes retailers, the group has manufacturers resembling COS, Monki, Weekday, Low cost Monday, & Different Tales, H&M Residence, ARKET and Afound. It counts round 4,664 shops in 77 markets and has 57 on-line markets.