H&M sees sales rising, but Russian closures are starting to weigh
Swedish clothing giant H&M said today that its revenue rose in the first quarter, but the closure of Russian stores has started to hurt growth.
Hundreds of Western companies have suspended operations in Russia following Moscow’s invasion of Ukraine, and a number of retailers, including H&M’s rival Zara, have closed their stores.
H&M has closed 185 stores and stopped online sales in Russia.
H&M announced that its global sales increased by six percent in local currencies between March 1 and March 28 compared to the same period last year.
H&M shares lost more than nine percent in the early hours of trading on the Stockholm Stock Exchange.
Before the war in Ukraine, the Covid-19 pandemic had weighed on the company’s performance.
“In addition to the general consequences of the pandemic, such as disruptions and delays in the supply chain, a new wave of the pandemic affected some of our most important markets in the first quarter,” said CEO Helena Helmersson.
“Nonetheless, we’ve seen a rebound in physical store sales compared to last year, while online sales have continued to perform well,” she added.
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