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H&M

H&M opens first Japanese outlet

Swedish high-street clothing giant Hennes and Mauritz (H&M) opened its first store in Japan on Saturday. H&M's Tokyo store signals the firm's entry into one of world's most competitive casual fashion markets.

H&M’s store is located in the Ginza shopping district of Tokyo and the opening attracted more than 3,000 people, mostly women in their 20s and 30s, ahead of a

ribbon-cutting ceremony on Saturday.

Japan thereby becomes the 30th country in which H&M has retail outlets bringing its total to 1,600 shops and 800 production bases worldwide.

Rolf Eriksen, chief executive of the Stockholm-based company, recently told Japanese media that he plans to expand outlets across the country.

H&M has already decided to open two more stores in the capital’s leading fashion districts of Harajuku and Shibuya.

With the debut in Japan of H&M, renowned for its low price but fashionable clothing, competition in the affordable Japanese fashion industry is expected to be further intensified, observers say.

Rivals Gap Inc. and Zara of the Inditex Group have already entered into the Japanese market, where local clothing giant Uniqlo is the market leader.

BUSINESS

Swedish retailer H&M sees profits slump after Russia exit

Swedish fashion retailer H&M reportedĀ a sizeable drop in third-quarter profit on Thursday following its decision to leave the Russian market.

Swedish retailer H&M sees profits slump after Russia exit

The world’s number two clothing group is among a slew of Western companies that have exited Russia following Moscow’s invasion of Ukraine.

H&M paused all sales in the country in March and announced in July that it would wind down operations, although it would reopen stores for “a limited period of time” to offload its remaining inventory.

The company said Thursday its net profit fell to 531 million kronor ($47 million) in the third quarter, down 89 percent from the same period last year. “The third quarter has largely been impacted by our decision to pause sales and then wind down the business in Russia,” chief executive Helena Helmersson said in a statement.

The group said in its earnings statement that it would launch cost-cutting measures that would result in savings totalling two billion kronor.

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