STOCKHOLM (Reuters) – H&M, the world’s second-biggest fashion retailer, said on Monday it had decided to end its business in Russia.
Russia was H&M’s sixth-largest market, and the company was increasing the number of its physical stores there while reducing it in many other markets.
The company suspended operations in the country in early March following Moscow’s invasion of Ukraine.
“After careful consideration, we find it impossible, given the current situation, to continue our activities in Russia,” Chief Executive Helena Helmersson said in a statement.
The company intends to temporarily reopen physical stores for a limited period to clear remaining inventory in Russia.
The entire liquidation is expected to cost approximately 2 billion Swedish crowns (189.5 million euros), of which approximately 1 billion crowns will impact cash flow.
The total amount will be included in exceptional costs in the third quarter results.
(Report Anna Ringstrom and Supantha Mukherjee; French version Elitsa Gadeva, editing by Kate Entringer)
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