H&M to wind down business in Russia after reopening stores to get rid of clothes
The world’s second-largest fashion retailer H&M has said it will start winding down business in Russia, citing “the unpredictability of the future.”
The Swedish clothing chain also blamed “current operational problems,” after it suspended sales in the country on 2 March.
It is the latest firm to confirm a more permanent withdrawal of business in Russia, which invaded Ukraine earlier this year.
In a statement, H&M said: “Having carried out a thorough assessment, we have considered it impossible to continue business in the Russian Federation in the current situation.”
However, it said it would reopen stores for a brief period so as to sell off remaining stock.
H&M would also take a bill of circa $190m due to the “curtailment” of the Russian business, which it said would be reflected in financial statements for the third quarter of 2022.
“We are now focused on ensuring responsible exits and the best possible support for our colleagues in the coming months,” it added.
Shares were down 0.77 per cent in afternoon trading on the Stockholm market on Monday.
Its share price has slumped some 28 per cent in the past year to date.