Owners of Swedish fashion chain H&M are expanding their portfolio of brands, by launching a new chain of higher-end stores that will be similar to Scandinavian company COS.
Margins at H&M fell in the first fiscal quarter, due to the rising cost price of cotton, but also because of what chief executive officer Karl-Johan Persson described as their “long-term investments”.
“We have many different projects in progress and already next year we will be launching a completely new store chain,” he told WWD. “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.”
No further details such as name and launch date of the new brand has been announced, but it won’t be until 2013 at the earliest.