Men's apparel store chain Taka-Q Co has reported year-end pre-tax losses of 1.25bn yen ($10.3m) following a substantial drop in sales.

Despite recording a continued loss, the figure represented an improvement on last year's recorded figure of a 1.76bn yen ($14.4m) pre-tax loss.

Citing increased output in overseas low-cost production facilities, the company reported a drop in the cost of sales of 2.6 points.

A reduction in price on men's suits saw existing stores sales drop 14 per cent, with total sales for the year dropping 18 per cent to 22.98bn yen ($188.5m).

The company's net losses also increased slightly from the 2.29bn yen ($18.8m) recorded last year to the 2.83bn yen ($23.2m) recorded this year. This included an extraordinary cost of 1.55bn yen following a campaign for early retirement.

For the current year, the company is predicting pre-tax losses of 700m yen ($5.7m) and sales of 18.2bn yen ($149.3m). The company also expects to see a net loss of 3.4bn yen ($27.9m) due to the continued early retirement campaign.