H&M Group provided the sales update ahead of its nine-month report due on 29 September.
The Swedish retailer said in local currency net sales fell 4%. On a like-for-like basis net sales at H&M Group rose SEK57.4bn (US$5.37m).
“The third quarter got off to a weak start, in common with the industry in many of the group’s major markets. Sales improved sequentially during the quarter, with a better start for the autumn collections than last year,” the retailer said.
In July, H&M Group confirmed it would be winding down its Russia operations noting continuing business in the country is “impossible” given the current situation.
H&M Group has run operations in Russia since 2009.
As part of the winding down process, the intention is to temporarily reopen physical stores for a limited period of time to sell the remaining inventory in Russia. The entire wind-down is expected to lead to costs for the H&M group amounting to a total of about SEK2bn, of which approximately SEK1bn will have a cash flow impact.
The full amount will be included as one-time costs in the results for the third quarter 2022. A reversal of the SEK353m in unrealised exchange gains in respect to intragroup receivables in Russian rubles from the second quarter 2022 is included in the one-time cost.