Topshop goes into the red and reduces its sales by 6% in 2017
The fashion company, owned by British group Arcadia, has posted losses of 10.9 million pounds, burdened by an impairment on a fixed asset and provisions for onerous leases.
Topshop falls victim to high street crisis in the UK. The British fashion company, owned by Arcadia group, has posted losses of 10.9 million pounds (12.4 million euros) in its last fiscal year, ended in August 2017.
Company sales, which also includes the Topman chain, fell by 6% in 2017, to 933.6 million pounds (1,064.4 million euros), while profits plummeted in comparison to the previous year, when Topshop gained 59.4 million pounds (67.7 million euros).
Topshop blamed its poor performance to the impairment on a fixed asset that had a negative impact of 12.6 million pounds (14.3 million euros) and the provisions for onerous leases. In fact, the company paid 4.2 million pounds (4.7 million euros) for leased premises in 2017.
Topshop registered a 6% drop in sales in 2017, to 933.6 million pounds (1,064.4 million euros)
In mid-May, Taveta Investments, the holding controlled by Sir Philipp Green that controls Arcadia, presented fiscal 2017 results (ended in August 26) with a fall in operating profit (before interest, rates, depreciation and amortization) of 42%, to 124.1 million pounds ( 140.8 million euros).
According to the company, the decrease was due to an exceptional charge of 29 million pounds (32.9 million euros) as a result of the deterioration of fixed assets, a provision for leases and a revaluation of the real estate portfolio.
The bad situation of the business could precipitate an ownership change. Last February, Green, who also controls department store chain Debenhams, among others, was studying the sale of a minority stake or 100% of Topshop's parent company. The Chinese group Shandong Ruyi, owner of luxury fashion groups SMCP and Bally, is one of the interested parties.
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