Fashion retailer River Island has reported plummeting operating profits for the 2022 financial year as the brand battled to clear excess stock and rising inflation.
Turnover at the family-owned clothing retailer rose 12% to £825.8m in 2022, below pre-pandemic levels, but operating profits plunged 90% to £7.4m, according to The Times.
However, the business insists it’s “back on track”, following the reappointment of executive chairman Richard Bradbury, who returned to head up the business at the beginning of this year after the departure of former boss Will Kernan.
A spokesman for the company said: “Following Richard Bradbury’s appointment as executive chairman at the start of 2023, significant changes have been made, which are starting to bear fruit. Product ranges have been focussed and a new leadership structure has been developed, with several new senior hires.
“River Island has invested significantly in shop refits and the digital business and marketing have been reorganised. As such the board believes the business is now back on a positive track.”
The retailer has over 300 stores in the UK, ships to 125 countries around the world and employs nearly 8,000 staff.
The retailer was particularly affected by the coronavirus pandemic, and River Island recorded a pre-tax loss of £51.5m in 2020, when it also slashed 350 jobs.
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