Arcadia Group saw like-for-likes and operating profits fall in the year to August 31, although total sales and pre-tax profits climbed.
Total sales for the business – which includes Topshop, Topman and Miss Selfridge – rose to £2.735bn, up from £2.67bn last year. However like-for-likes over the period fell 2.7%.
Operating profit before goodwill and exceptional items fell to £220.9m, down from £225.2m last year, although pre-tax profits, excluding the sale of 25% of Topman and Topshop to Leonard Green & Partners last December, rose from £166.9m to £167.8m.
Arcadia ended the year with £74.7m of net cash, compared to bank debt of £308.9m in 2012.
Sir Philip Green said he was pleased with the results “despite the ongoing challenging global economic conditions”. He noted that for the first 10 weeks of the current financial year, like-for-likes were down 3.7% “affected by unseasonably mild and wet weather”.
“Trading conditions remain challenging, therefore exciting and engaging our customer across multi-channels is at the top of our agenda. Product handwriting, quality and value continue to be more important than ever,” he said.
He highlighted Arcadia’s investment into refreshing brand concepts and stores, saying: “We are now in the process of selecting a group of stores from all brands to upgrade and refurbish in the next six months.”
Green also noted the business’ international expansion, which included the opening of 127 franchise stores overseas, with a further 161 planned for the coming year “with several further markets under discussion”.
He added: “Following Leonard Green & Partners’ investment in Topshop and Topman, we are collaborating closely with them and continue to drive and grow our US business. We opened our fourth US fully-owned Topshop/Topman flagship store in The Grove in Los Angeles in February 2013, and we have several further stores identified in the US that are under negotiation.”