River Island profits fall following investment

River Island has reported a drop in its operating profit to 35.1 million pounds for the 52 weeks ended 29 December compared to 80.6 million pounds for the same period last year.

The 56 percent decrease was driven by continued investment in the business, which included investment in technology and service, and the opening of four new retail outlets and the relocation of nine.

Revenue was also down to 919.7 million pounds from 944.5 million pounds the previous year.

Commenting on the results in a statement, River Island CEO Ben Lewis said: “Despite challenging market conditions, we have maintained our long-term vision to build a resilient business and maintain our unrelenting focus on our customers and their fashion needs. We are seeing continued growth online and with our wholesale partners, and we remain committed to retaining a store presence on the high street, all of which we see as key areas to support growth for the future.

“However, we are also experiencing a decrease in profitability and increased cost pressures on our business. Quite simply, it is more expensive to maintain our level of service to our customers and we have to work harder just to stand still. As we evolve and adapt to our customers’ ever-changing needs, we will continue to invest for the long term in important areas such as product, technology, stores, service and our people.”

Lewis will be stepping down from his role as CEO on 30 September when he will be succeeded by Will Kernan. Lewis will remain on the retailer’s board.

Photo credit: River Island, Facebook