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Green predicts Bhs profit drop

By FashionUnited

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Operating profit at British department store Bhs is expected to drop at least 30 percent this year due to difficult trading conditions, says billionaire owner Philip Green. Underlying sales at the chain have dropped 7 to 8 percent since September, compared with a 5.5 percent decline in the six months before. As a result, operating profit will drop to between £75 and £85 million, compared with £105 million last year. According to Green, Bhs is doing poorly because it does not offer the right products. "Sales are down, product is off the boil and I am happy to fix it," Green said on Tuesday. "Basically, the product is poor and when you get the product wrong, you get punished. I have not been engaging with Bhs. I have been distracted when the market is a lot more tough. I am happy to take ownership of it."

Green said that in the past four weeks he has changed key staff, has added buying directors for women's wear, children's wear and lingerie, and would increase investment in the stores. He plans to invest £100 million in Bhs, £70 million more than last year, and has bought seven Allders stores which he will convert into Bhs Home stores.

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