River Island turnover increases, profit falls

​​In its accounts filed with the Companies House UK, River Island Holdings Ltd reported an overall turnover increase of 6 percent to 715.3 million pounds for the year to December 31, 2022.

River Island’s revenues in the UK rose to 639.9 million pounds and rest of the world revenues increased to 75.4 million pounds.

The company, which designs and retails River Island branded fashion in the UK, Ireland, and the rest of the world, said: “the combination of costs to clear excess stock and the impact of inflation on the goods sold resulted in a reduction in gross profit to 51.6 million pounds compared to 117 million pounds in the previous year.”

The company’s operating profit reduced to 1.9 million pounds, while profit after tax declined to 1.5 million pounds. Despite this, the company added that with a strong cash control business ended the year with “substantial cash reserves”.

The company further said that after Richard Bradbury’s appointment as executive chairman at the start of this year, and investments made in product development, store refurbishments and senior level hires are starting to bear fruit.