H&M's Net Profit In 2021-2022 Falls Threefold To Nearly $350Mln

MOSCOW (Pakistan Point News / Sputnik - 27th January, 2023) The net profit of Swedish clothing retailer Hennes & Mauritz (H&M) dropped to 3.5 billion Swedish kronor ($346 million) for fiscal 2021-2022 from 11 billion Swedish kronor a year earlier following its withdrawal from Russian market, the company said in the yearly and quarterly financial report on Friday.

"The group's profit after tax was SEK 3,566 m (11,010), corresponding to EK 2.16 (6.65) per share," the report read, adding that "As communicated previously, results for the year were impacted by one-time costs of SEK 2,591 m for winding down the Russian operations and of a cost and efficiency programme."

The company's revenue rose 12.4% to 223.553 billion Swedish kronor, according to the report.

H&M posted a net loss of 864 million Swedish kronor for the fourth quarter of the fiscal year, compared with a profit of 4.6 billion Swedish kronor a year earlier.

On a per-share basis, the loss was 0.53 Swedish kronor, compared with a profit of 2.79 Swedish kronor a year earlier. H&M's fourth quarter net sales increased by almost 10% to 62.433 billion Swedish kronor, or 11% excluding Russia, Belarus and Ukraine, according to the report.

H&M Group, founded in 1947 in Sweden, in addition to the H&M clothing retailer, also develops such brands as COS, Monki, and Weekday, among others. The company's network has about 4,600 stores in 77 markets worldwide. The company was one of many global brands to close its stores in Russia and Belarus after the start of the Russian special military operation in Ukraine in February 2022.