[ad_1]
&M has reported a sudden slowdown in gross sales after it halted operations in Russia as a result of invasion of Ukraine.
The corporate paused all gross sales in Russia, Belarus and Ukraine, affecting 185 shops, earlier this month and in addition stopped on-line gross sales in Russia.
It advised shareholders that gross sales from March 1 to March 28 elevated by 6% in opposition to the identical interval final yr.
Nevertheless, it represented a big discount in development after the corporate posted an 18% soar in internet gross sales to 49.16 billion Swedish krona (£4 billion) for the three months to February 28.
Helena Helmersson, chief government of the group, mentioned it’s “deeply involved” concerning the warfare in Ukraine.
“Apart from results related to the paused gross sales in Russia, Belarus and Ukraine, the group’s different plans stay in place,” she added.
We noticed a restoration of gross sales in bodily shops in contrast with final yr, whereas on-line gross sales continued to carry out effectively. This exhibits the worth of getting each bodily and digital channels which strengthen and complement one another
“Our flexibility is nice, which permits us to behave rapidly as circumstances change on the planet round us.”
Russia is H&M’s sixth largest market, representing 4% of gross sales, and the halt to operations within the area comes amid a continued boycott in China, beforehand certainly one of its largest markets, after it raised considerations over cotton sourced from the Xinjiang area.
Shares within the Sweden-listed enterprise dropped to a two-year low on Thursday as investor sentiment waned on the replace.
H&M additionally revealed it swung to an working revenue of 458 million Swedish krona (£37.5 million) for the quarter to February because it was boosted by an increase in full-price gross sales.
It highlighted that it was nonetheless nonetheless impacted by the unfold of the Omicron variant of coronavirus in the course of the interval and was “impacted by intensive restrictions” in some nations.
Ms Helmersson added: “Along with the final penalties of the pandemic corresponding to disruptions and delays within the provide chain, a few of our main markets have been impacted by a brand new wave of the pandemic within the first quarter.
“Regardless of this we noticed a restoration of gross sales in bodily shops in contrast with final yr, whereas on-line gross sales continued to carry out effectively.
“This exhibits the worth of getting each bodily and digital channels which strengthen and complement one another.”
[ad_2]
Source link