H&M says to wind down business in Russia
H&M, the world's second-biggest fashion retailer, said on Monday it had decided to wind down its business in Russia, joining a growing list of companies fully exiting the country.
The company suspended its business in Russia in early March following Moscow's invasion of Ukraine.
Russia was H&M's sixth biggest market and the company was increasing its store count there while reducing physical stores in many other markets.
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"After careful consideration, we see it as impossible given the current situation to continue our business in Russia," Chief Executive Helena Helmersson said in a statement.
The company intends to temporarily reopen physical stores for a limited period of time to sell remaining inventory in Russia.
The entire wind-down is expected to cost about 2 billion Swedish crowns ($191.3 million), of which about 1 billion crowns will have a cash flow impact.
The full amount will be included as one-time costs in the results for the third quarter.
($1 = 10.4543 Swedish crowns)
