Retailer Suspends Russian Operations and Donates to Aid Efforts
- 23% increase in net sales for H&M Group in Q1 FY22
- Net sales in local currencies grew by 18% year-on-year
- Profit after financial items increased sevenfold to SEK14.3bn (£1.13bn)
- Full-year net sales rose by 6% to SEK199bn (£15.8bn)
- H&M suspended sales in Russia amid Ukraine crisis
- Temporary closure of H&M stores in Ukraine for safety reasons
The H&M Group has reported a 23% increase in net sales for the first quarter of FY22, reaching SEK49.16bn (£39.32bn) from December 1, 2021 to February 28, 2022. Net sales in local currencies also grew by 18% year-on-year during the quarter. In its FY21 results, H&M’s profit after financial items increased almost sevenfold to SEK14.3bn (£1.13bn), up from SEK2bn (£158m) in the previous year. Full-year net sales rose by 6% to SEK199bn (£15.8bn), with local currency sales increasing by 12%. Amidst these achievements, H&M has suspended all sales in Russia due to the ongoing crisis in Ukraine and temporarily closed its stores in the country for customer and employee safety. The company expressed concern about the situation and is in dialogue with stakeholders while donating clothes and other necessities and contributing to organizations like Save the Children and UNHCR.
Factuality Level: 10
Factuality Justification: The article provides accurate information about H&M’s financial performance and their response to the crisis in Ukraine without any irrelevant or misleading details, sensationalism, redundancy, or personal perspective presented as a fact. It also includes objective reporting and logical reasoning.
Noise Level: 3
Noise Justification: The article provides relevant information about H&M’s financial performance and their response to the Ukraine crisis, but it lacks in-depth analysis or exploration of long-term trends or possibilities.
Financial Relevance: Yes
Financial Markets Impacted: Retail sector, specifically fashion retailers
Financial Rating Justification: The article discusses the financial performance of H&M Group, a major fashion retailer, and its impact on the stock market. It also mentions the company’s decision to suspend sales in Russia due to the ongoing crisis in Ukraine, which can affect the stock prices of other retailers in the sector.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of any extreme event in the last 48 hours.
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