River Island FY13 profits plunge 10 percent despite rise in sales

REPORT_ River Island sales grew 4 percent to 839 million pounds (1,375.2 million dollars) 

at the end of December 28. The company has attributed growth in sales to positive response received for its Rihanna for River Island collection. However, pre-tax profits fell by 10 percent to 88 million pounds (144.2 million dollars) as the retailer invested in expanding its store network in the UK and internationally.

Despite the fall in profits, River Island paid out a 100 million pounds (163.9 million dollars) dividend to its owners, the Lewis family. The brand gained nationwide popularity in the 1960s when it rebranded its label as Chelsea Girl and retailed low-cost fashion on the high street. The company name changed to River Island in 1988 when Chelsea Girl and its menswear brand Concept Man were combined together under one company platform. Now the brand is retailed through more than 320 River Island stores worldwide, including in Russia, Holland, Poland, the Middle East and Far East.

During the last fiscal year, River Island expanded into South Africa, Sweden, Malta, Estonia and the Philippines. It also launched online e-platforms in Australia, France and Germany. Company is also increasing its store count in the UK. In 2013, the retailer opened eight stores and closed two, with major flagship shops opening in Leeds, Liverpool and on Oxford Street in London.

Now the plans are in the pipeline to enter the US market apart from expanding presence in Australia. To reach out to the wider consumer base, River Island is also all set to unveil its first TVC.