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Arcadia profits expected to fall by a third
Thursday August 4th 2011
Sir Philip Green has told senior staff at Arcadia that profits in the current financial year ending this month are likely to be a third lower than previously forecast.
The group, whose store chains include Topshop, Dorothy Perkins and BHS, has partly attributed the fall to the bad weather last December which left Arcadia with higher levels of stock than usual to dispose of in its January sales. Sir Philip has been reported as saying that the disruption cost the group a total of £40 million.
Despite the downturn, Sir Philp is continuing to invest in the business with the international expansion of Topshop and he is also reducing the group’s borrowings which are expected to fall below the £300 million mark.
Arcadia is one of the largest privately owned retailers in the UK with 2,500 stores and 45,000 employees.