Dutch streetwear brand Daily Paper has revealed plans to divestiture its New York store, the first overseas retail location opened by the label. The process is expected to be completed in early 2025.

Details of the decision were outlined in Daily Paper’s annual report for the financial year 2023/24, in which the fashion brand revealed steps to ensure profitability in anticipation of a lower turnover in the coming years.

For the reported period, profit slightly increased, despite a drop in turnover, which fell to just over 14 million euros during the financial year. The results, as stated by Daily Paper, do not meet the “financial ratios required for the agreement with the bank”, leading the brand to enter into discussions regarding a possible exemption.

The report added that there was “uncertainty that could have a material impact on the company’s ability to continue operating”. In light of this, it was taking “robust steps” to save costs, particularly as it anticipates a drop in turnover due to a global decline in fashion and retail.

With this in mind, Daily Paper revealed that it had carried out a restructuring of its head office team, a process that had a “positive effect on costs”, while its European distribution centre was to take on all e-commerce sales, intending to reduce other costs.

All in all, the company's cash flow should improve. The brand emphasised that it has a "healthy gross margin" and that the actions taken should improve the net margin and stabilise liquidity risk.

This article originally appeared on FashionUnited.NL. It was translated to English using an AI tool called Genesis and edited by Rachel Douglass..