H&M Group’s Russia exit and one-time costs caused the retailer’s profits to plunge in the three months to Nov. 30.
The group in September unveiled a cost-cutting program through which it hoped to reduce its overheads, simplify its organizational structure, facilitate quick decision-making and remove layers. The changes were expected to take around six to nine months, and bear fruit starting in the second half of 2023.It has been a difficult period for fashion’s mass-market players, as consumers tighten their purse strings in a context of rising inflation.
H&M also said that sales between Dec. 1, 2022, and Jan. 25, 2023, marking the beginning of its new fiscal quarter, increased 5 percent in local currencies against the same period in 2022. Excluding Russia, Belarus and Ukraine, company sales were up 9 percent in local currencies. “Sales in the new financial year have started well,” said Helena Helmersson, chief executive officer of H&M Group. “The external factors are still challenging, but are moving in the right direction.
“Combined with our investments and efficiency improvements, there are very good prerequisites for 2023 to be a year of increased sales, and improved profitability,” she continued. “Thus, our goal of achieving a double-digit operating margin for full-year 2024 remains in place.”
France Dernières Nouvelles, France Actualités
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