River Island saw profits fall to £152.8 million for the year ended December 2007, down from £157m the previous year.
However River Island sales rose by nearly 8% to £727m over the year.
According to The Sunday Telegraph, profits halved at the investment vehicle of of the billionaire Lewis family who own River Island for the year. Group turnover at The Lewis Trust Group rose from £812m to £888m, but pre-tax profits fell from £243m to £149.9m.
The directors said in a statement in the accounts: “The market…is highly competitive. Turnover in the first part of 2008 is in lie with expectations, taking into account the more challenging environment.”