Arcadia Group has “fought hard” this year to maintain its position as a leader in the UK fashion market while expanding internationally, according to chairman Sir Philip Green.
Green told Drapers he was pleased with Arcadia’s results for the year ended August 29, particularly its international and online growth.
Arcadia Group’s total sales rose 1.8% to £2.07bn during the period, but its total like-for-likes fell 0.7%. Underlying UK retail like-for-likes were down 0.9% year on year.
However, online sales were up 23.9%, and the group made an operating profit before goodwill and exceptional items of £251.6m, up from £238.4m last year. It had a headline cash generation of £328.1m, up from £316.7m.
For the first 10 weeks of this financial year, like-for-like sales were down 2.3% year on year.
“As always it’s a competitive and ever-changing marketplace,” said Green. “We’ve fought hard to maintain business in the UK, reopening the Topshop/Topman flagships in Birmingham and Oxford.
“We have plans to open Topshop/Topman in Manchester next year [replacing/adding to the one in the Arndale shopping centre] and continue to grow our franchise business, with discussions already taking place in China and India.”
Green said the decision to sell BHS to Retail Acquisitions in March had enabled Arcadia “to focus on the growth of our multiples brand operation in the UK and internationally”.
It further developed its partnership with US retailer Nordstrom and now trades out of 94 Topshop concessions and 85 Topman, as well as Nordstrom.com. It is in discussions to develop further space for both.
A 12,620 sq ft Topshop flagship opened in Amsterdam in February.
Arcadia Group has 2,358 UK stores.