H&M to stop business in Russia

H&M to stop business in Russia

The H&M logo is seen in a closed store in Moscow.

STOCKHOLM Reuters -- H&M said on Monday it had decided to wind down its business in Russia, joining a growing list of companies that are fully exiting the country.

In early March, the company stopped its business in Russia because of Moscow's invasion of Ukraine. Russia was H&M's sixth biggest market and the company was increasing its store count there while reducing physical stores in many other markets.

The current situation in Russia makes it impossible to continue our business in Russia, Chief Executive Helena Helmersson said in a statement.

The company plans to temporarily reopen physical stores for a limited period to sell remaining inventory in Russia.

The entire wind-down is expected to cost about 2 billion Swedish crowns $191.3 million, of which about 1 billion crowns will have a cash flow impact.

The full amount will be included as one-time costs in the results for the third quarter.