UK: Mild autumn hits sales ar Topshop, BHS, Dorothy Perkins and Miss Selfridge group Arcadia
- Credit: PA
Sir Philip Green’s Topshop and BHS empire today reported a fall in sales and warned that recent trading had worsened amid the mild autumn weather.
Arcadia, which also owns high street brands including Burton, Dorothy Perkins and Miss Selfridge, followed New Look in revealing the impact of warmer-than-normal conditions after the fashion chain said this week that shoppers had been holding back from buying winter clothes.
Figures from the Office for National Statistics today also showed the impact of an unseasonably mild autumn on demand for clothing as retail sales fell unexpectedly in October, down 0.7%.
Arcadia disclosed a 3.7% drop in comparable store sales in the first 10 weeks of its new financial year, after falling 2.7% in the 12 months to August 31.
Sir Philip said “trading conditions remain challenging”, with the results marking the second year of declining sales . Underlying pre-tax profits edged 0.5% higher to £167.8million, but adjusted earnings fell 2% to £220.9m.
You may also want to watch:
For the eight year running Sir Philip did not pay a dividend, with the last payout having been made in 2005 when he banked a £1.2billion windfall.
The full-year figures come amid speculation over takeover interest in Sir Philip’s struggling department store chain BHS. Overseas suitors are reportedly circling BHS, with potential bidders said to include Christo Wiese, who is South Africa’s third richest man with a fortune estimated at £2 billion, US private equity firm Apollo and a number of retail turnaround firms, although Sir Philip is not understood to be holding any talks currently over a sale of BHS, which he bought for £200m in 1999.
- 1 Ipswich Town face fight to keep young midfielder Gibbs with rivals Norwich among interested clubs
- 2 Ipswich Town transfer rumour: Portsmouth 'fend off' Blues to agree Stockley deal
- 3 First look at £10m Sudbury garden centre revamp
- 4 If your surname is on this list you could be sitting on a fortune
- 5 Inside quirky off-grid houseboat with stunning river views - yours for £500k
- 6 Gill has 'no regrets' over Norwich to Ipswich switch
- 7 'Spooky' bushes full of caterpillars spotted near Suffolk roads
- 8 Construction work begins on TV set ahead of Amazon series filming
- 9 Ipswich Town transfer rumour: Blues 'consider £350k bid' for keeper
- 10 Truck's four-figure repair fee at Colchester garage left unpaid
BHS has been weighed down by expensive leases and a pension fund deficit, although it is still a force on the high street with 180 stores and annual sales of £700m.
Arcadia said it was continuing to drive overseas expansion, with a further 161 new stores planned over the year ahead after 127 franchise shops opened in 2012-13.
Its Topshop/Topman brand has been increasing its presence in the United States, following Sir Philip’s move last year to sell a 25% stake in the chains to American private equity firm Leonard Green & Partners for £350 million, valuing the businesses at £2 billion.
Sir Philip said he had been “collaborating closely” with the investor and now has four fully-owned Topshop/Topman stores in the US, with more in the pipeline.