Aditya Birla Fashion Witness Downfall of Forever21
Aditya Birla Group recently witnessed Rs23 crore loss in business because of falling sales of brand Forever21. The group is now downsizing the brand’s stores and cutting costs as sales from the fast fashion business decline.
Loss widened because Forever21 took a one-time inventory hit. ABFRL has reduced the sizes of its oldest stores and will now focus on opening new but smaller stores. ABFRL is expecting the fast fashion business to turn around by the next quarter, driven by high double digit like to like growth in sales. Like to like refers to growth in sales from stores that have been open for the same period of time. The firm has been focusing on cost cutting to help boost margins, primarily through renegotiating rents and reducing store sizes wherever possible including for Pantaloons, the firm’s departmental store chain.