H&M Suffers 68% Loss of Net Profit Due to Unfavorable Factors In 2022 Fiscal Year

The Swedish textile giant H&M on Friday reported a 68% drop in its net profit during its 2022 financial year due to unfavorable factors such as its withdrawal from Russia, rise in raw materials and freight prices, and a high dollar.

During its annual exercise (from December 2021 to November 2022), executive director Helena Helmersson argued that the company decided not to pass the added costs to consumers in order to defend its share in the market.

The fashion giant recorded a net loss of 864 million crowns (84 million dollars) in the fourth quarter, much higher than expected by analysts according to Bloomberg and Factset agencies.

Despite the dismal earnings report, Helmersson remained optimistic, highlighting profits in the earlier quarters, as well as H&M’s ongoing investments in digitalization, sustainability and technological capabilities.