H&M has revealed it is to launch a new retail chain after posting a rise in sales for the first three months of the year today.
The Swedish retailer said the new chain would provide customers with an even broader product offering.
Chief executive Karl-Johan Persson said: “We have many different projects in progress and already 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.”
This news came as H&M announced that from December 1 to February 29 group sales including VAT increased by 13% to SEK 27.8bn (£2.6bn), 3% on a like-for-like basis. Profit after financial items rose 4.6% to SEK 3.7bn (£350m) due to increased buying cost not passed onto consumers.
Sales from March 1 to 27 increased by 22% compared to the same period last year. The retailer said collections had been well received which resulted in increased market share.
Persson said the increased purchasing costs, partly due to higher cotton prices, had a negative effect on gross margins.