Arcadia group posts 38pc drop in profits
Arcadia, the Topshop-to-Bhs British retail group owned by billionaire Philip Green, added to the bad news coming from the UK high street, posting a 38pc fall in year-profit and a further deterioration in recent trading as mild weather deterred winter clothing purchases.
The group, which also owns the Topman, Burton, Dorothy Perkins, Miss Selfridge, Wallis and Evans brands, said yesterday it made a pretax profit of £133.1m (€154.5m) in the year to August 27, down from £213.2m in the 2009-10 year.
Total sales, from 2,507 owned stores and 600 franchised outlets in 36 countries, fell 3.4pc to £2.68bn. E-commerce sales, however, rose 27pc.
Sales at UK stores open over a year, including VAT sales tax, fell 1.8pc, with the group badly hit by last December's heavy snow.
Margins fell 1.8 percentage points after the firm chose not to pass on cost increases to customers. That cost the group £52.4m. Like-for-like sales, including VAT, were down 4.4pc in the first 12 weeks of the new financial year.
"Trading conditions remain extremely challenging, with style, quality and value at the top of our agenda and more important than ever. Additionally, the warmest October and November on record have made Autumn trading much tougher," said Monaco-based Green.