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H&M withdraws from Russia

Now H&M is gone too: The Swedish group is giving up its stores in Russia.

But first they should open again for a short time.

The fashion group Hennes & Mauritz (H&M) is ending its business in Russia. In the current situation, she sees it as “impossible” to continue the business in Russia, said H&M boss Helena Helmersson on Monday in Stockholm.

It was therefore decided to initiate the process of closing the Russian business. The group justified the decision with operational challenges and an unpredictable future. Financially, the withdrawal will be noticeable in the results for the third quarter.

Management expects the entire settlement process to incur one-off costs of around SEK 2 billion (EUR 190 million), around half of which will impact cash flow. The costs also include a reversal of unrealized foreign exchange gains of SEK 353 million.

First, H&M wants to temporarily reopen its stores in Russia to sell the remaining stock. Because of the Ukraine war, H&M stopped all sales in Russia at the beginning of March. The group has been present in the country since 2009. H&M shares were up slightly in early trading.

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