Forever 21 narrowed losses in the UK by 72% last year as sales jumped by almost a third.
The US fashion retailer posted pre-tax losses of £18.4m in the UK in the year to February 28, 2014, down from a loss of £66.5m in the previous year.
Documents filed at Companies House revealed Forever 21 generated sales up more than 30% from £37m to £48.3m.
It said sales were driven by two new store openings in the period, bringing the total estate to eight in the UK, while losses were hit by an impairment charge of £9.3m.
Forever 21 said: “The losses from the company’s early years of trading are a direct result of investments undertaken to establish the business and to create brand awareness through marketing activities as a new entrant into the UK retail market.”
Forever 21 entered the UK in 2010.