River Island takes turnover hit from lockdowns, but upbeat on recovery

River Island has reported a 31.7 percent drop in turnover for the year ended December 2020 as lockdowns took their toll on the business, but the company says current trading is recovering “strongly”.

Turnover at the high street fashion retailer during the period came in at 600.5 million pounds, down from the 879.5 million pounds it posted a year earlier. The company said all its turnover loss was suffered during lockdown periods.

Meanwhile, operating loss for the period was 36.2 million pounds, compared to a profit of 21.4 million pounds the previous year.

But the company said it had a “strong and encouraging” start to the year before Covid-19 impacted the business.

And it said robust digital performance and careful management during the pandemic meant it achieved break-even full-year underlying EBITDA.

Profit ahead of pre-pandemic levels

In terms of current trading, it said it is recovering “strongly”, with top-line sales growth and improving margins. It said it is now delivering profitability ahead of pre-pandemic levels, supported by “a strategic overhaul and full business restructure”.

“The world of retail was changing at an exponential rate well before the pandemic struck and these trends have only accelerated since,” said CEO Will Kernan in a statement.

He said the company’s strategy before the pandemic, together with its actions during it, “have allowed our business to weather the storm and emerge stronger”.

“I am pleased to say that, today, our business is in better shape than it was pre-pandemic: our differentiated product ranges and pricing have huge appeal to a wide demographic, there is more buzz around the brand than there has been in many years, we are operating far more efficiently, and our digital offer goes from strength to strength,” Kernan said.