“After careful consideration, we see that it is impossible to continue our business in Russia given the situation,” Group Chief Executive Helena Helmersson said in a statement. As part of its withdrawal from the Russian market, H&M plans to temporarily reopen its stores, which were closed days after the start of the invasion of Ukraine, in order to sell its remaining inventory.
According to the group, which employs nearly 6,000 people in Russia, this withdrawal should cost it around 189 million euros, including a reduction in its liquidity of around 947,000 euros. These losses will be charged to the accounts for the third quarter of this year, the company argued. On the Stockholm Stock Exchange, the H&M title fell by 0.1%. Several financial analysts downgraded the company to “neutral”.
Like others before H&M
Since the invasion in Russia, many international companies including Sweden’s Volvo and Ericsson have announced their withdrawal from the country or a reduction in activities such as IKEA.
The automaker had thus halted sales and production at its plant in Kaluga, in central Russia, while the communications giant announced that it would cease deliveries to Russian customers. The furniture giant has also decided to “reduce its activities in Russia and Belarus”, already suspended after the start of the offensive.