H&M's pretax revenue fell to three.2 billion kronor ($360 million) within the December to February interval, the primary quarter of the corporate's monetary 12 months, from three.three billion kronor the earlier 12 months, it stated.
"For fashion retail basically, market situations had been very powerful in lots of our massive markets in central and southern Europe and within the US, and this was mirrored in our gross sales," CEO Karl-Johan Persson stated in a press release.
The new brand, ARKET, shall be launched after the summer season with the primary retailer to open in London adopted by Brussels, Copenhagen and Munich and on-line operations in 18 European markets in early autumn, the group stated.
It gives garments for males, ladies and youngsters and family merchandise, which shall be costlier than H&M.
Every retailer can even embrace a espresso store impressed by the Nordic kitchen and delicacies.
"The general route and focus is high quality in easy, timeless and purposeful designs," Persson stated.
"There shall be merchandise in a broad worth vary, nevertheless in a barely increased worth section than H&M with emphasis on supplies, operate and match," he added.
The group additionally operates Swedish manufacturers equivalent to Cos, Different Tales, Monki, Weekday and Low cost Monday, whose gross sales proceed to develop each on-line and in shops.