Fashion Retailer H&M Proposes Cost Cut To Tide Over Economic Pressure - Hennes & Mauritz (OTC:HNNMY)

Fashion retailer Hennes & Mauritz AB HNNMY has unveiled a SEK2 billion (~$178 million) cost savings plan to further streamline the business.
The company expects the savings from the program to become visible in the second half of 2023.
H&M's Q3 net sales increased by 3%. In local currencies, net sales decreased by 4%.
The company's reported operating profit plunged to SEK 902 million from SEK 6.27 billion last year, corresponding to an operating margin of 1.6% versus 11.3% a year ago.
H&M said its one-off cost for business exit from Russia was SEK2.1 billion.
Helena Helmersson, CEO, said, "The third quarter has largely been impacted by our decision to pause sales and then wind down the business in Russia."
"In common with the rest of the industry, sales were weak in many of our major markets at the start of the period. Sales then gradually improved, despite of a heatwave in several European countries and some remaining delays in the supply of goods."
Price Action: HNNMY shares closed at $1.87 on Wednesday.