H&M Begins Russia Exit Citing Operational Difficulties

• Swedish fashion giant Hennes & Mauritz AB (OTC: HNNMY) said it would exit Russia, citing the operational challenges and an unpredictable future.

• H&M has run operations in Russia since 2009.

• H&M said it could not carry out business under the current circumstances and that many colleagues are affected as a consequence.

• As part of its winding-down process, the company plans to temporarily reopen physical stores for a limited period to sell the remaining inventory in Russia.

• The exit is expected to cost H&M a total of about SEK 2 billion, of which ~SEK 1 billion will have a cash flow impact.

• “After careful consideration, we see it as impossible given the current situation to continue our business in Russia. We are deeply saddened about the impact this will have on our colleagues and very grateful for all their hard work and dedication,” said CEO Helena Helmersson.

• Price Action: HNNMY shares closed 1.67% higher at $2.44 on Friday.

• Photo Via Company

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