- Prachi Singh |
Taveta Investments Ltd., parent of fashion retailers including Topshop, Topman and Miss Selfridge reported a decline in profit from continuing operations to 71.6 million pounds (96.7 million dollars) against 139.1 million pounds (187.8 million dollars) for the year to August 2017, according to a statement released by the company.
Commenting on the announcement Ian Grabiner, the company’s Chief Executive Officer said on behalf of the board: “The retail environment remains highly competitive and challenging. Whilst we have found headline sales and profits disappointing, we remain a strongly cash generative business and had a positive net cash balance at the year-end of 157.2 million pounds. We look to be as efficient as we can be given the challenging retail environment.”
Taveta Investments reports 5.3 percent drop in total sales
Total sales at the Sir Philip Green-owned firm declined 5.3 percent to 1.9 billion pounds (2.5 billion dollars) owing to falling footfall at the brick-and-mortar stores in the UK. Digital sales, however witnessed an improvement of 11.5 percent.
Despite the challenging retail environment, the company plans to invest 81.5 million pounds (110 million dollars) this year in a new distribution centre and development of its online platforms. Work on a new 1 million-net-sq. ft. distribution center in Daventry, Northamptonshire, England is currently underway, which is expected to become operational in 2019.
“During the current year we have strengthened our brand management team with the appointment of Paul Price as CEO of Top Shop/Top Man. Paul has assembled a strong team around him, with key external appointees in design, creative, buying and merchandising. We continue to develop our wholesale business overseas, and have built excellent partnerships with Zalando and Nordstrom who sell our merchandise via their distribution channels,” added Grabiner.
photo: Topman website