River Island has swung to a loss amid ‘challenging’ environment and tough competition

For the 52 weeks to December 30, 2023, River Island posted a 15.1% drop in revenue to £701.5m, down from £825.8m in 2022.

River Island also swung to a loss before tax of £32.2m compared to a profit of £7.5m in the previous year.

EBITDA for the full year was also down 146% from a profit of £26.6m in 2022 to a loss of £12.4m in 2023.

The fashion retailer called 2023 a “year of reset” and said its product ranges have now been “re-focused”. It solidified its top team with a string of new hires during the year.

The business highlighted increased competition in the market and said customers are seeking “more diverse, convenient and speedier” shopping experiences.

The group noted competition “in the digital space” as fast-fashion giant Shein continues to prove a hit with shoppers.

Looking ahead, River Island said its supply chain could face “disruptions” due to a lack of ships and disruption in the Red Sea, which could cause stock build-ups, shortages and delays.

The retailer also outlined ways it plans to “mitigate the risk” of an ongoing “competitive retail environment”, which includes investing in its store estate and technology, expanding its wholesale offering and continuing to bolster its leadership team.

River Island said in a filing to Companies House: “The business has invested in customer proposition − with stronger product ranges, an enhanced shopping environment in stores and an elevated digital experience.

“The business is now starting to see the benefits from the investment. Customers are reacting positively and that is delivering improved business performance.

“Despite the challenging trading environment so far this year we remain positive about the outlook.”