H&M profits fall short on shuttered business in Russia, FDA says it will not regulate CBD market
Notable business headlines include H&M profits falling short on consumer spending and its shuttered business in Russia as well as FDA announcing it will not regulate the CBD market.
Video transcript
JULIE HYMAN: Let's get down to business now. Here is what we're watching in terms of other headlines this morning. Rising costs erased almost all of Hennes and Mauritz's profit last quarter. The Swedish retailer-- note, of course, this is H&M-- said surging costs for energy, freight, and clothing raw materials, plus the effect of a still strong dollar, caused an 87% drop in operating profit. H&M is also feeling the loss of its shuttered business in Russia, which was its sixth largest market.
H&M results, by the way, in sharp contrast to luxury goods conglomerate LVMH, which saw its sales rise last quarter, albeit at a slowing pace than earlier in 2022. Its Louis Vuitton label surpassed 20 billion euros in sales for the first time last year. LVMH boss Bernard Arnault, who also happens to be the world's richest man, said China sales are rebounding. And if early 2023 trends continue, the company will have, quote, "another very good year."
And the Food and Drug Administration is no longer looking to regulate the over $5 billion CBD market. The agency says CBD cannot be considered a dietary supplement or food additive, and it will require a new regulatory pathway. The FDA notes that there are too many safety risks relating to long-term use, including possible liver damage. It will work with Congress, it says, on a new path forward.
