• FY profit slumps 79.7% to GBP86.2m
  • Sales climb 0.9% to GBP2.71bn 
  • BHS losses widen to GBP21m from GBP19.3m
Losses at BHS widened to GBP21m for the year to 30 August

Losses at BHS widened to GBP21m for the year to 30 August

Wider losses at BHS have resulted in a double-digit slump in annual profit for UK retailer Arcadia.

The group, whose other brands include Topshop, Dorothy Perkins and Wallis, said profit after tax but before minority interests amounted to GBP86.2m (US$135.1m) for the year to 30 August, compared to GBP423.7m in the same period of last year.

Profit on ordinary activities before taxation and exceptional items, meanwhile, declined 3.4% to GBP143.1m from GBP148.1m a year ago.

The company said losses at its BHS business widened to GBP21m from GBP19.3m.

Total sales edged up 0.9% to GBP2.71bn from GBP2.68bn last year. Total like-for-like sales rose 1.6%, with Arcadia climbing 0.7% and BHS increasing 3.6%. Underlying UK retail like-for-like sales improved 0.1% year-on-year.

E-commerce sales grew by 13.4%.

"The retail industry continues to be fast changing, as the number of channels through which customers choose to purchase and engage with us continually evolves, thus increasing the complexity of our operations, and our need for efficiency and speed to market," said group chairman Sir Philip Green said.

"Over the past year, we have continued to trade successfully in the UK, with strong performances in particular from Dorothy Perkins and Wallis."

However, BHS remains challenging, with this sector of retail continuing to be very tough. Nonetheless, Green said the company will continue to review its property portfolio in the UK, given the number of leases due to expire. Tight stock management remains a priority, as well as an effective and well-audited supply chain, he added.

In the first ten weeks of the current year, total like-for-like sales, including VAT, were down 1.2%, due to unseasonably mild and wet weather.