H&M Group Starts Process To Exit Russia; Sees SEK 2 Bln Charge For Q3

Hennes & Mauritz AB or H&M Group (HNNMY.PK,HMRZF.PK,HEN.L), a Swedish clothing firm, said on Monday that it has decided to start a process to wind down its business in Russia.

The company said the move follows the present operational challenges and an unpredictable future in Russia.

H&M Group, which began operations in Russia in 2009, had paused all sales in the country in March following the Ukraine invasion.

The company now sees a cost of around SEK 2 billion, of which 50 percent is expected to have a cash flow impact.

The sum will be reported as one-time cost for the third quarter, which also includes an unrealized exchange gain of SEK 353 million of second quarter.

As part of its decision, the firm aims to temporarily reopen physical stores for a limited period to sell remaining stocks in the country.

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