River Island, the clothing retailer, saw profits sink by 90% in 2022, and with headwinds still causing trouble for the industry, the owners will be hoping the return of chief executive officer Richard Bradbury will help guide the company to recovery this year.
An abundance of excess stock and inflationary pressures on the cost of goods meant operating profits slumped from £73.5 million in 2021 to £7.5 million last year, while profits after tax dropped to £5.5 million from £62.6 million, a filing on companies house revealed.
Turnover jumped by 11.6% to reach £825.8 million, while footfall was the only other key metric to increase, rising by 127% due to the lifting of Covid regulations.
Richard Bradbury, who returned as CEO twelve years after departing the fashion retailer, started his role at the start of the year and has made “significant changes” since taking up the helm.
“[Changes] are starting to bear fruit, although this year is planned to be a year of transition. Specifically, product ranges have been refocussed and a new leadership structure has been developed with several new senior hires,” the group said in its financial report.
Area of change includes refitting new stores, improving its digital business and reorganising marketing.