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Zara Owner Inditex Halts Trading in Russia

A man wearing a protective face mask, used as a preventive measure against the coronavirus disease (COVID-19), walks out of a Zara store in central Kyiv, Ukraine November 25, 2020. REUTERS/Valentyn Ogirenko
A man wearing a protective face mask, used as a preventive measure against the coronavirus disease (COVID-19), walks out of a Zara store in central Kyiv, Ukraine November 25, 2020. REUTERS/Valentyn Ogirenko
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Zara Owner Inditex Halts Trading in Russia

A man wearing a protective face mask, used as a preventive measure against the coronavirus disease (COVID-19), walks out of a Zara store in central Kyiv, Ukraine November 25, 2020. REUTERS/Valentyn Ogirenko
A man wearing a protective face mask, used as a preventive measure against the coronavirus disease (COVID-19), walks out of a Zara store in central Kyiv, Ukraine November 25, 2020. REUTERS/Valentyn Ogirenko

Spanish fashion retailer Inditex has halted trading in Russia, closing its 502 shops and stopping online sales, the company said in a statement on Saturday to the Spanish regulator.

"In the current circumstances Inditex cannot guarantee the continuity of the operations and commercial conditions in the Russian Federation and temporarily suspends its activity", the Zara owner company said.

Russia accounts for around 8.5% of the group's global EBIT, Inditex added.

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H&M Abandons 2024 Earnings Margin Target, Q3 Profit Lags

People walk past a closed H&M clothing store in Omsk, Russia, March 3, 2022. REUTERS/Alexey Malgavko
People walk past a closed H&M clothing store in Omsk, Russia, March 3, 2022. REUTERS/Alexey Malgavko
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H&M Abandons 2024 Earnings Margin Target, Q3 Profit Lags

People walk past a closed H&M clothing store in Omsk, Russia, March 3, 2022. REUTERS/Alexey Malgavko
People walk past a closed H&M clothing store in Omsk, Russia, March 3, 2022. REUTERS/Alexey Malgavko

H&M, the world's second-largest listed fashion retailer, said on Thursday it no longer expected to reach its full-year earnings margin goal, while reporting a lower-than-expected operating profit for the June-August period.

H&M has struggled to boost its profitability amid high inflation and stiff competition from its bigger Spanish rival Zara, owned by Inditex, and the rapid growth of cut-price online fast-fashion retailer Shein.

"At present we estimate that this year's operating margin will be lower than 10%," Chief Executive Daniel Erver said in a statement.

The accumulated margin stood 7.4% for the first three quarters.

The full-year operating margins for 2022 and 2023 were 3.2% and 6.2% respectively, and H&M had cautioned in June that factors such as materials costs and foreign currency had made the 2024 target more difficult to reach.