STOCKHOLM (AFP) – H&M reported yesterday a big drop in profits in 2022, with an unexpected loss in the fourth quarter as the Swedish fashion retailer exited Russia and faced soaring production costs.
H&M was among a slew of foreign companies that shipped out of Russia last year after Western nations imposed sweeping sanctions on the country.
“Our decision to wind down the business in Russia, which was an important and profitable market, has had a significant negative impact on our results,” chief executive Helena Helmersson said in a results statement.
The company was also hit by a historically strong dollar and increases in the costs of freight and raw materials.
“Rather than passing on the full cost to our customers, we chose to strengthen our market position further,” Helmersson said.
