Profits at young fashion chain River Island have been hit, but sales rose 8.5 per cent despite the challenging market.

Accounts filed at Companies House for the family owner’s investment vehicle the Lewis Trust Group showed profits at River Island fell from£157 million to£152.8 million for the year to December 2007. Sales climbed to£727 million from£670 million last year.

The Lewis family, who are believed to be worth about£1.6 billion, own River Island as well as hotels and a£300 million-plus property portfolio.

In its report, the directors of the Lewis Trust Group said the market was highly competitive. “Turnover in the first part of 2008 is in line with expectations, taking into account the more challenging environment,” the report said.

Topics