Fashion retailer H&M Hennes & Mauritz confirmed to just-style today (3 March) that the new chain it is planning to launch next year will be called "& Other Stories".

The company announced last week that it plans to launch a new brand in 2013. It will sit in a higher price segment than its other lines, which mainly focus on a young or fast-fashion customer base.

The first store is set to open in a European city, and will "build on the positive experience of Cos".

Last week, H&M recorded a 4.6% increase in first-quarter net profit to reach SEK2.7bn (US$411.2m). Sales increased 13% in local currencies to SEK27.8bn. 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 its buying, production and IT divisions ahead of the launch of the new brand.