H&M has confirmed plans to cut costs by £160 million after profits plunged.
The retailer, which has a shop in atria Watford, did not say where it hoped to make savings but said the plans should come into force in the second half of 2023.
The Swedish company posted pre-tax profits of 689 million krona (£56 million) between June and August, plummeting from the 6.1 billion krona (£500 million) reported in the same period last year.
Exiting Russia was the main reason, but soaring inflation and “many other external challenges” such as higher raw materials, freight prices and a stronger US dollar were also blamed.
READ MORE
- 'I thought I was at a concert' - eatery launch day hit by noise complaints
- Brazen thieves use camera-blocking tech while stealing Mercedes
Shutting shops in Russia, where it had about 6,000 employees, cost the retailer 2.1 billion Swedish krona (£170 million), it revealed on Thursday.
However, its sales were up by 3% compared with the same three months in 2021, and jumped by 13% in the first nine months of the year.
H&M's chief executive Helena Helmersson said sales growth provides “important proof” that the group is growing “even when customers’ purchasing power is decreasing”.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here