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By Scott Kanowsky
Investing.com — H&M Hennes & Mauritz AB (ST:) gross sales beat forecasts within the fourth quarter, however have been unchanged when gauged in native currencies, because the Swedish retailer faces strain from the winding down of its operations in Russia and Belarus and COVID-19 restrictions in China.
The group closed its enterprise dealings within the two nations in the course of the interval, promoting off its remaining inventory and shuttering its final areas. H&M beforehand introduced that it might exit the 2 markets in response to Russia’s invasion of Ukraine.
Demand was additionally impacted by efficiency in China, the place COVID-19 lockdowns led to the non permanent closure of “round 25 – 50” shops.
within the three-month interval elevated by 10% in comparison with the corresponding timeframe final 12 months to SEK 62.45 billion, forward of Bloomberg consensus estimates of SEK 62.11B.
Excluding Russia, Belarus, and Ukraine, the soar in income was 11% in SEK, and a couple of% in native currencies, H&M added.
Analysts at Jefferies stated the quarterly gross sales replace confirmed indicators of resilience regardless of unseasonably heat temperatures and a current surge in dwelling prices squeezing client budgets.
In the meantime, full-year gross sales rose by 12% to SEK 223.57B. The corporate will current its report for the 2022 monetary 12 months on January 27.
Shares in H&M fell in early buying and selling on Thursday.
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