River Island annual sales rise 4 percent, profit dips

For the year ending December 31, sales at River Island increased 4 percent from 932.7 million pounds (1,259 million dollars) to 970.5 million pounds (1,310 million dollars), driven by a 21 percent rise in online and mobile sales, reports Retail Gazette. The company’s operating profit, however, declined 7 percent from 145.8 million pounds (196 million dollars) to 135.7 million pounds (183 million dollars).

The report added that due to the decline in operating profit the company owners have decided against taking dividend for the second year in a row. The Lewis family had gained a dividend of 180 million pounds (242 million dollars) in 2013 and 2014. Instead the company would invest funds in its online as well as offline shopping services by increasing the number of its IT and digital positions in the UK and opening new stores and hiring more buying, merchandising and design staff.

River Island opened doors to five stores in the last month, and now the company operates a network of around 250 stores.

Picture:Facebook/River Island