• Wall Street Journal, Thursday, June 24, 2010 10:46 AM

Forever 21 has been expanding way beyond its roots as a Los Angeles boutique for young women, capped by tomorrow's opening of a four-story outlet in Times Square that has 90,000 square feet, 151 dressing rooms and 32 cash registers, Elizabeth Holmes reports.

Korean immigrant Don Chang and his wife opened a 900-square-foot boutique in Los Angeles in 1984. They had 11 stores by the end of that decade, averaging about 5,000 square feet. This year, Forever 21 expects sales near $3 billion from roughly 480 stores, primarily in the U.S. but with a handful in Asia, up from $2.3 billion in 2009 and more than triple 2005.

Over the years, Forever 21 has also moved into new categories, including menswear in 2006 and children's apparel this year. It also has a plus-sized collection and high-fashion line for women, as well as footwear, accessories and some beauty products. "They may be able to take more share from a broader demographic, and that may support the larger prototype," says Piper Jaffray senior analyst Jeffrey Klinefelter.

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