H&M Group, the Swedish fast fashion giant, has seen a fall in its profits, owing to its exit from Russia.
The Group witnessed a year-on-year slump of 85.6 per cent in its operating profits to £ 73.4 million for the three months to 31 August 2022.
The fall has been attributed to delays in supply chain and inflation-induced material and shipping costs – not to mention the costs related to Group’s exit from Russia.
H&M Group had officially pulled out from Russia on 18 July.
Q3, in particular, saw H&M Group record a one-time cost of £ 172 million related to to shutting down of its operations in Russia.
Net sales for the third quarter rose by 3 per cent to £ 4.68 billion, compared to the same period a year before.
Meanwhile, the Group is planning to bolster savings by reducing costs in the second half of 2023.
Founded in 1947, H&M is known for its fast-fashion apparels for men, women, teenagers and children. It generated US $ 24.8 billion in 2019.
