H&M Drops as Surging Costs Nearly Wipe Out Earnings
- Exit from Russia, Belarus also contributes to profit decline
- Retailer warns that purchasing conditions still very negative
This article is for subscribers only.
Hennes & Mauritz AB shares fell after the Swedish clothing retailer said severe increases in energy, freight and garment prices nearly wiped out profit in the past quarter.
Operating income dropped 87% to 821 billion kronor ($80 million) in the three months through November, H&M said Friday, far off analysts’ estimates. The stock fell as much as 7.9%.