Days after rumors circulated that it would open a new luxury fashion label, Swedish retail giant H&M has confirmed that it's planning to open a new brand in 2013.
While the company wouldn't characterize exactly what price range the chain will occupy, CEO Karl-Johan Persson said in a press release that the new chain is part of a plan to secure H&M's future as a major player in retail.
"We have many different projects in progress and already next year we will be launching a completely new store chain," Persson said. "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."
Cos is the highest priced and most fashion-oriented of the many brands H&M owns and operates, and if that's the brand that compares best with the new business, it's possible that next year will see the launch of the rumored luxury line.
Rumblings of an H&M-backed luxury line started over the weekend after the Swedish financial newspaper Dagens Industri reported that the company would venture into high-fashion territory. Representatives for H&M did not respond to requests for more information about the new line by the time of this post.
>> Update: An H&M spokeswoman told Fashionologie that the new brand will cost more than H&M, but is not being classified as a luxury label. "A new store chain will be launched in 2013 under a separate brand with a higher price point," she said. "It will not be a luxury brand, but it will be a retail chain that will follow the same ambition as H&M, to offer our customers the best price for a comparable item."