Topshop was among Sir Philip Green's brands to score record sales and profits this year but parent company, the Arcadia Group, recorded a 6.1% fall in operating profit to £275.3 million for the year ended August 30.
Arcadia said like-for-like sales were down 2.8% over the 52 week period. Total sales were down 0.6% to £1.8 billion.
However Arcadia's Topshop, Topman and Miss Selfridge chains generated record turnover and profits. Its mainstream fascias, which include Dorothy Perkins, Burton and Wallis, had a more challenging year and were hampered further by unseasonal weather patterns.
In the first seven weeks since the year end Arcadia has seen sales slip back further by 1.8%.
Arcadia owner Sir Philip Green said: "Our attention to detail and efficiency has never been more important. My team and I continue to work hard with the brands on stock management and cost productivity. We have kept overall cost growth at 2% on the year, despite a space increase of 3% and underlying fixed like-for-like growth. More importantly, we have tried to ensure that the customer sees newness and excitement in our stores on a regular basis."
Green added: "Strong cashflow enabled us to invest £85m of capital in the last financial year, demonstrating our commitment to all the brands. The investment has been focused on new space and business systems, including the internet, which is seeing strong growth in the younger fashion brands. In the year ahead we are planning, taking into account both openings and closures, to increase our net trading space by a further 210,000 sq ft in the UK. Our international trading space will increase by 126,000 sq ft, including our flagship store in New York, taking our overall number of international stores from
447 to 505."
Watch a BBC interview with Sir Philip Green on the economic challenges facing the high street.