The company announced last week that it plans to launch a new brand in 2013. The new brand will sit in a higher price segment than its other brands, which primarily focus on a young or fast-fashion customer base..
“The first store is set to open in a European city, and the company said the brand will “build on the positive experience of Cos.” Last week, the company recorded a 4.6% increase in first-quarter net profit to reach $411.2 million. Sales increased 13% in local currencies. However, gross margin declined to 55.8% from 57.8% in the same period of the prior year .
“It attributed the decline in margin to a decision not to pass on higher input costs, combined with higher expenses due to investments the company is making in strengthening the buying, production and IT divisions ahead of the launch of the new brand .