Sweden’s Hennes & Mauritz AB mentioned Thursday that web revenue for its third quarter fell considerably after it booked a one-time price associated to the winding down of its Russian operations, and that it’s going to begin a price and effectivity program.
posted a web revenue of 531 million Swedish kronor ($47.4 million) for the fiscal quarter ended Aug. 31, in contrast with SEK4.69 billion a 12 months earlier. Analysts polled by FactSet had anticipated a web revenue of SEK2.17 billion.
Gross sales had been SEK57.45 billion in contrast with SEK55.59 billion a 12 months earlier. Analysts polled by FactSet had anticipated gross sales of SEK57.45 billion.
The corporate mentioned it has booked a one-time price of SEK2.10 billion, associated to the winding down of Russian operations, hitting the consequence for the quarter.
The associated fee and effectivity program is anticipated to end in annual financial savings of round SEK2 billion.
“The third quarter has largely been impacted by our choice to pause gross sales after which wind down the enterprise in Russia. This has had a major impact on our gross sales and profitability, which explains half of the lower in income in contrast with the third quarter final 12 months,” Chief Government Helena Helmersson mentioned.
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