In the statement announcing the closure, Asics also said it expects to record “extraordinary losses” in the fiscal year ending Dec. 31. Regarding the store closure specifically, the Japanese company said it anticipates approximately 2.3 billion yen ($22.4 million) in losses from the cancellation of the lease and the impairment of related fixed assets.
In its most recent business forecast for the 2020 fiscal year, released Nov. 6, the athleticwear giant predicted companywide net sales of 320 billion yen ($3.1 billion) and an operating loss of 6 billion yen ($58.4 million). The New York City store closure, it said Monday, does not impact this forecast.
Considering the uncertainty regarding when the pandemic will end and “the business risk of continuing to operate the store,” Asics said closing the Fifth Avenue location will the North American business’ profitability.
The Midtown Manhattan flagship first opened in December 2017. With 2,035 square feet of retail space, it sold athletic footwear and apparel under its title brand, as well as lifestyle products from its street-inspired label AsicsTiger. The company’s other New York City store, located in Manhattan’s Meatpacking District, remains open.
The Asics store closure arrives amid sweeping closures at other brands. Caleres announced in late November it would be closing 133 stores under its women’s footwear brand Naturalizer. In December, women’s budget fashion chain Francesca’s marked another 97 stores for closure after already previously shuttering 137. And on Tuesday, Macy’s confirmed its plan to close 45 brick-and-mortar locations.
However, while many brands have suffered throughout the pandemic, a few have taken the opportunity to open up new brick-and-mortar locations. Swiss running brand On debuted its first-ever retail store last month in New York City. In November, Ugg opened its own Manhattan flagship less than three blocks from Asics’ shuttered Fifth Avenue store. The multi-level, 12,842-square-foot shop, Ugg said, is to be the first of a “curated fleet” of similar stores slated to roll out in 2021 and beyond.