River Island is back in profit as it grows at home and in N. America
British fashion retailer River Island had good news this week with the company seeing turnover up 23.2% last year at £740 million.
That meant operating profit was £73.5 million, a big bounce from the £36.2 million loss in 2020. And EBITDA was £94.8 million, up sharply from a loss of £8.5 million.
Importantly, that beat its pre-Covid performance on the profits front, although the firm admitted that recent trading has been more challenging as costs rise and consumers stay cautious.
The company said its cash and balance sheet position is robust and this helped it navigate the many headwinds out there. It was able to continue investing in its various channels to boost the customer experience in its stores and online.
Those investments included it unveiling a new store concept in the past couple of months with the debut of River Studios, and focusing on North American expansion via its concessions in Nordstrom in the US, and Hudson’s Bay in Canada. It has also added new categories including beauty and loungewear.
CEO Will Kernan said: “We have delivered a very encouraging performance this year, significantly outperforming pre-pandemic profits. This is testament to the progress the business has made over the past three years. While the DNA at the heart of River Island remains unchanged, our business and brand have evolved to ensure we are fit for the future.
“The macroeconomic environment is clearly very tough and nobody is immune to the challenges that the retail sector is currently facing. However, River Island is well positioned both financially and operationally to weather the economic uncertainties ahead.”
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