Stockholm, Sweden– Swedish fashion retailer H&M reported on Thursday a sizeable drop in third-quarter profit following its decision to leave the Russian market.
The world’s number two clothing group is among a slew of Western companies that have exited Russia following Moscow’s invasion of Ukraine.H&M paused all sales in the country in March and announced in July that it would wind down operations, although it would reopen stores for “a limited period of time” to offload its remaining inventory.
The company said Thursday its net profit fell to 531 million kronor ($47 million) in the third quarter, down 89 percent from the same period last year.
“The third quarter has largely been impacted by our decision to pause sales and then wind down the business in Russia,” chief executive Helena Helmersson said in a statement.
The group said in its earnings statement that it would launch cost-cutting measures that would result in savings totaling two billion kronor.
