It’s been over a month since companies like H&M and Nike announced they would halt operations in Russia. And earnings have started to shed light on how they’re being impacted.
- More than 600 Western companies have indicated they would stop or cut down on their ops in the country, per researchers at Yale University.
Take it slow: H&M, for example, reported a return to profit in Q1, but the rest of the year is uncertain. The retailer said closing its 185 stores and pausing online sales in Russia, Ukraine, and Belarus slowed sales growth to 6% in March, down from 18% in Q1 at the end of February.
- Russia also accounted for 4% of H&M’s Q4 sales.
Victoria’s Secret, too, expressed concerns over losses piling up in Q1 and potentially beyond. The lingerie company, which has a small store presence in Russia, recently hinted at how “global unrest” (and inflation) could contribute to disappointing results in the future.
- The war has also caused broader supply-chain disruptions, extending to businesses that don’t have a presence in the country, like Kohl’s.
More to watch: For McDonald’s, sales from Ukraine and Russia collectively made up ~9% of the company’s $23 billion in global revenue last year. And Ikea, which is one of the largest Western employers in Russia, saw the country bring in $1.8 billion, or 4%, of its total retail sales in the year through last August.—JS
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