Arcadia Group profits up 25%
Arcadia Group, whose brands include Topshop, Dorothy Perkins, Burton, BHS, and Miss Selfridge, saw its full year pre-tax profit rise by 25% to £166.9 million despite a fall in like-for-like sales.
In the 52 weeks to 25 August 2012, total like-for-like sales edged down 0.7%, while UK like-for-like sales dropped by 3.2%. Total sales were flat at £2.7 billion.
Total group operating profit before goodwill was £225.4 million, up from £190.4 million last year.
The group saw strong growth in its e-commerce business with UK sales rising by 20% and international sales by 33%. The group’s online operations now cover 112 countries worldwide.
Arcadia continued to expand its franchise and international business by opening 15 new stores in the year taking the total to 615 franchised outlets operating in 39 countries.
New store openings included Topshop/Topman outlets in Melbourne and Sydney as well as stores in Sao Paulo in Brazil and Vancouver in Canada. The group is also due to open a store in Johannesburg this week, its first store in South Africa.
In the US, Arcadia opened fully owned Topshop/Topman flagship stores in Chicago and Las Vegas and a fourth USA flagship store is due to open in The Grove, Los Angeles in Spring 2013.
Commenting on the results Arcadia Group owner Sir Philip Green said: "Given the very challenging conditions both in the UK and around the world, we are pleased to report strong cash generation of £330 million.
"We have focused our efforts on being efficient in both stock management and delivering newness as regularly as possible, resulting in improved markdown and margin.
"Trading conditions remain challenging, therefore exciting and engaging our customer across multi-channels is at the top of our agenda. Product handwriting, quality and value are more important than ever.
"Finally, in these very tough times, I would like to thank all of the staff within Arcadia and Bhs for their commitment, energy and enthusiasm and our customers for their continued loyalty in shopping across our various high street brands."
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