Losses up five-fold at Forever 21's Irish store
Published 25/04/2016 | 02:30
Pre-tax losses at the only Irish store of global fashion chain Forever 21 jumped almost five fold last year to €8.39m. The figure for 2014 was €1.73m.
The US chain has just one outlet in Ireland, at the Jervis Street centre in Dublin, and employs 89 people here. Losses at Forever 21 Fashion Ireland sharply increased in spite of revenues rising by 23pc from €8.466m to €10.39m in the 12 months to the end of February last, its accounts show. That equals turnover of about €200,000 a week.
A large proportion of its 2015 losses related to a foreign exchange loss of €5.45m. The firm's rent for the year also increased from €3.46m to €3.66m.
According to a directors' report "the company has maintained tight controls over costs while continuing its investment to establish brand awareness through marketing activities".
The Irish unit's directors state that they are looking to expand market share in Ireland.
The company's parent has agreed to provide continued financial support, they said.