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Farewell from Russia:
H&M CEO
Helena Helmersson
estimates the cost of the withdrawal at 190 million euros
Photo: JONAS EKSTROMER/ AFP
The Swedish fashion chain Hennes & Mauritz (H&M) is withdrawing completely from the Russian market.
The continuation of the business that started in 2009 is "impossible in view of the current situation," said company boss
Helena Helmersson
(49) on Monday in Stockholm.
H&M had already closed its stores in Russia in March as a result of the Russian attack on Ukraine.
In the statement, company boss Helmersson was "deeply saddened by the consequences this step will have for colleagues".
H&M put the cost of withdrawing from Russia at around two billion crowns (around 190 million euros).
This amount should appear as a one-time cost in the balance sheet for the third quarter.
In view of the expected ebb of the corona pandemic, the textile chain had set itself ambitious goals for the coming years.
The company announced in Stockholm that the growth will be supported by the expansion of the online business and entry into new markets.
To achieve these goals, H&M will increase its investments.
By 2030 at the latest, sales should be doubled compared to 2021.
The operating margin is expected to reach the 10 percent mark by 2024.
In addition to the Hennes & Mauritz fashion chain, the H&M Group also includes other brands such as COS, Weekday and Arket.
As part of the settlement process, the branches are now to be reopened temporarily and for a limited period of time in order to sell remaining stocks.
mje/Reuters, dpa