H&M 3Q Profit Drops After Russia Exit Costs
By Kyle Morris
Sweden's Hennes & Mauritz AB said Thursday that net profit
for its third quarter fell significantly after it booked a one-time
cost related to the winding down of its Russian operations, and
that it will start a cost and efficiency program.
The company posted a net profit of 531 million Swedish kronor
($47.4 million) for the fiscal quarter ended Aug. 31, compared with
SEK4.69 billion a year earlier. Analysts polled by FactSet had
expected a net profit of SEK2.17 billion.
Sales were SEK57.45 billion compared with SEK55.59 billion a
year earlier. Analysts polled by FactSet had expected sales of
The company said it has booked a one-time cost of SEK2.10
billion, related to the winding down of Russian operations, hitting
the result for the quarter.
The cost and efficiency program is expected to result in annual
savings of around SEK2 billion.
"The third quarter has largely been impacted by our decision to
pause sales and then wind down the business in Russia. This has had
a significant effect on our sales and profitability, which explains
half of the decrease in profits compared with the third quarter
last year," Chief Executive Helena Helmersson said.
Write to Kyle Morris at firstname.lastname@example.org
(END) Dow Jones Newswires
September 29, 2022 02:42 ET (06:42 GMT)
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