Business Insider/Jessica Tyler Cos and & Other Stories are much more timeless than H&M.
- Though H&M's business has been struggling as of late, other H&M group brands have been doing well, according to the company's CEO, Karl-Johan Persson.
- Cos, which launched in 2007, is focused on timeless, minimalist designs sold in a modern setting.
- & Other Stories, launched in 2010, offers shoes, bags, accessories, beauty products, stationery and women's clothing.
- H&M tries to follow trends and sells an abundance of styles in stores, but its sister stores tend to be more timeless and high-end.
- We compared H&M with its sister stores and saw why Cos and & Other Stories are helping keep H&M afloat.
H&M is the largest brand owned by H&M group, with 4,353 stores worldwide. The brand struggled throughout 2017, and it has spent this year trying to correct issues like high prices and low-quality clothing.
"Customers have responded positively to the changes we are making, for example, in those H&M stores where we are trying out various adjustments to the selection, product presentation and store image to better suit the taste and shopping patterns of the local customers," CEO Karl-Johan Persson said in the brand's most recent earnings call in September.
It also has struggled with inventory - in June, the brand had over $4 billion worth of unsold clothing. Persson said in September that inventory is still higher than planned, but the brand is "increasing automation" and "optimizing the logistics network," putting H&M in a better position than it was in this time last year.
While H&M is struggling to fix its brand issues, its sister stores appear to be on a better track.
Cos, short for Collection of Style, is known for its high-quality, thoughtful, and timeless designs meant to "last beyond the season," according to its website. While the philosophy is similar to that of H&M in terms of creating relatively affordable fashion, the brand has previously stated that "Cos prices start where H&M's finish."
& Other Stories, launched in 2010, offers shoes, bags, accessories, beauty products, stationery and women's clothing. According to its website, & Other Stories is a "a one-stop styling destination filled with collections from three design ateliers in Paris, Stockholm and Los Angeles." As with Cos, the brand is typically more expensive than H&M.
Cos currently has 255 stores, and & Other Stories has 63.
"We keep expanding our brands online through our own channels as well as through digital marketplaces. Later this year, Cos will open its online store in China." Persson said.
"Our new brands benefit from the group's economies of scale and infrastructure, enabling them to grow successfully - and we can already see several examples of this, such as Cos, & Other Stories and Monki."
We shopped at H&M, Cos, and & Other Stories to see why H&M is struggling to keep up:
