Swedish fashion retailer Hennes & Mauritz has confirmed that it will open a new retail chain in its latest financial report. Earlier this week rumours surface from a Swedish newspaper that H&M would be launching a new high-end brand to sit above
its COS label, and in the brand’s financial statement Director Karl-Johan Persson confirmed that it will open in 2013.
said: "Next year we will be launching a completely new store chain. Like COS, which today is very successful with good profitability, the new chain of stores will be independent and complement the other offerings from the Group. We have great faith in this new brand and we see considerable potential for further initiatives.”
The new brand, which has not been named, will probably be targeting the high-end luxury market and will join the retailer’s other high street brands including H&M, COS, Cheap Monday, and Monki, which recently opened a new store on Carnaby Street in London.
The financial report for the first quarter stated that H&M’s Group’s sales including VAT increased by 13 per cent in local currencies, with its sales in comparable units increasing by 3 per cent. This equated to a gross profit of amounted to 15.5 billion Swedish kronor (1.7 billion), which was slightly down on the same period last year. The decrease in the gross margin was noted to increasing purchasing costs combined with the fact that H&M has chosen not to raise its prices to customers.
With regards to March’s figures, the company reported ‘strong sales’, with an increased revenue of 22 per cent, compared to the same period last year.