Four months after the postponement of operations in Russia, Group H
The Swedish fast-fashion giant highlighted “current operational challenges” and an “unpredictable future” when describing the points behind its resolve to leave Russia.
“After careful action, it is impossible for us, given the existing situation, to continue our activities in Russia,” said Helena Helmersson, CEO of H Group.
H
The company’s strong second-quarter effects likely contributed to its confidence to disappear altogether, with net sales rising 17% to 54. 5 billion kroner ($5. 3 billion) from 46. 5 billion kroner ($4. 6 billion) in the period.
H
A total of 181 retail outlets remained closed in Russia, Belarus and Ukraine prior to the launch, with 7500 workers operating in all 3 markets. Prior to the Covid-19 pandemic, in fiscal year 2019, those markets accounted for approximately 10% of the group’s operations. lucre.
However, H’s
Combined assets in Russia, which include significant inventories, money and money equivalents, appliances and usage rights, amounted to SEK 4400 million (approximately $427 million) at the end of the quarter.
The entire H settlement is expected
Although operations in Belarus closed, H
H
Late last month, Nike said it would permanently shut down Russian operations after the first final outlets and then cut ties with Russian franchises.
And shipping giant A. P. Moller-Maersk carried out what it said its most recent shipping operation at a Russian port in early May, taking a $718 million hit as it left the country. % stake in Global Ports Investments (GPI), which has six terminals in Russia and two in Finland.
TJX, which does not have its own flags in the country, left the market for good when it sold its 25% stake in Russian clothing store Familia.
The decisions of those corporations, as well as the departures of U. S. corporations like McDonald’s and generation giant Cisco, now highlight other corporations to potentially do the same. Brands such as Levi Strauss, H
For Inditex, owner of Zara, Pull
“We are in contact with all the players who have been affected by the suspended measure and are exploring other alternatives,” Maceiras told investors. “But for now there is no other resolution than to continue monitoring the situation. “
The company has already taken an impairment of 216 million euros ($219 million) to cover all ordinary costs arising from the temporary closure of its operations in Ukraine and Russia.
Before the markets closed, Inditex’s sales in Russia and Ukraine accounted for about five percentage points of sales growth, the company said. As of March, Inditex operated 502 retail stores in Russia and 84 in Ukraine before finalizing retail stores.