Clothing chain Hennes & Mauritz (H&M) has seen sales increase by 10 percent in the past quarter. That is above the expectations of market experts.
However, income was depressed because dozens of stores in China temporarily closed due to corona outbreaks. H&M also announced that it ceased operations in Russia last quarter.
The remaining stocks in Russia were sold, and the last stores were closed at the end of November. As a result, turnover in the previous quarter amounted to 62.5 billion Swedish kronor, compared to 56.8 billion kronor in the same period a year earlier.
Last month, H&M was the first major European clothing chain to announce a reorganization due to declining purchasing power. The company plans to cut 1,500 jobs worldwide as part of a cost-cutting program.
In addition, H&M recently warned of increased costs that will weigh on profits. The departure from Russia because of the war in Ukraine saddled the company with a one-off cost of 2.1 billion kroner. In addition, H&M is struggling with higher costs for materials and transport.
H&M is active in more than 75 countries worldwide. The company has 4665 stores.