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Profits at the world’s second biggest fashion retailer dropped 88.2% to £179m in the year up until 30 November 2020, and gross profit fell 23.6% to £8.15bn.
Consumers who buy items from EU retailers have also been hit extra fees of up to £5 ($7) on fashion items shipped from the bloc.
H&M said its net sales were down by 10% year-on-year in the fourth quarter.