H&M (Stockholm) announced yesterday that it is launching a new store brand, 'Afound,' later this year, which will feature budget products from its own labels as well as third-party ones. The first store is expected to open in Stockholm and also operate an e-commerce website.
The move follows news that the company’s profits and sales fell in the most recent quarter: During its fourth quarter, pretax profit fell 34 percent and for the fiscal year, its gross profit margin fell to 54 percent, according to Fortune.
To help stave off further declines, the company also announced that it would open fewer stores this year as it responds to shifting customer demands. It plans to open about 390 stores while closing 170 others. It also has plans to enter Ukraine and Uruguay markets for the first time.