Lincoln Height’s Forever 21 Inc. posted a loss of more than 29 million pounds, or almost $40 million, for its seven U.K. retail stores for the year ended Feb. 28, 2016, according to an annual report filed with the U.K. government on Dec. 15, 2017.
The loss widened the prior-year’s $22.5 million loss by almost 75 percent.
Revenue decreased as well, a result of high markdowns and a decline in foot traffic for the fast fashion retailer, the company said in the report.
Forever 21 said it had decided to close four U.K. stores as a result of the stores’ poor financial performance. At least two of those locations have already closed, according to local news reports.
The company opened its first U.K. store in 2010.
Forever 21 was the seventh largest private company in L.A. County on the Business Journal’s list as ranked by 2016 revenue. The Business Journal estimated that the company generated $4 billion.
Restaurants, retail and hospitality reporter Caroline Anderson can be reached at firstname.lastname@example.org. Follow her on Twitter @caroline_mander.