LONDON — Topshop, Topman and Miss Selfridge were the bright spots on the balance sheet of Arcadia Group Ltd., which posted a 5.1 percent decline in pretax profits to 188.9 million pounds, or $337.8 million, on a 0.6 percent fall in sales to 1.85 billion pounds, or $3.7 billion, in the year ended Aug. 30.
Net profits rose 38.8 percent in the year to 164.2 million pounds, or $328.4 million, from 118.2 million pounds, or $236.4 million, but that was due to an extraordinary tax credit. Sales last year totaled 1.86 billion pounds, or $3.72 billion.
All figures have been calculated at an average exchange rate for the period.
Sir Philip Green, owner of the privately held Arcadia, said Topshop, Topman and Miss Selfridge had an excellent year with “record turnover and profit.”
In an interview, Green said Topman led the pack with double-digit sales growth in the year ended Aug. 30, while Arcadia’s mainstream brands — which include Dorothy Perkins, Evans and Wallis — had a tougher time as a result of the credit crunch and unseasonal weather conditions.
The statement added that turnover in the first seven weeks of the current financial year was down 1.8 percent.
Arcadia’s total operating profit was down 7.6 percent to 243.2 million pounds, or $486.4 million, from 263.3 million pounds, or $526.6 million.
With regard to his bid for troubled Icelandic retail company Baugur Group’s debt, Green said negotiations are still under way and he is waiting to hear back from Iceland’s government, which controls the banks that hold Baugur’s $2 billion-plus in debts.
As reported, since Green revealed he was interested in buying all or part of the debt, other investment companies, such as Texas Pacific Group, have come forward. Asked if, in buying all or part of Baugur’s debt, he could end up owning Baugur’s minority stake in Saks Fifth Avenue, Green said it was “too early to tell.”
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews
@prada is introducing a new project at its men’s fall 2018 show this Sunday: “Prada Invites.” The fashion house invited four celebrated creative minds – @ronanaerwanbouroullec, Konstantin Grcic, @herzogdemeuron and @rem.koolhaas – to each create a unique item with its iconic nylon material. The designs will be unveiled on the runway show, which will take place at the company’s warehouse in Viale Ortles 25. #wwdfashion #mfwm (📷: @martinocarrera)
@kering_official is spinning off its stake in puma in an effort to focus on its luxury brands, the brand operator announced yesterday. “We are proud to have supported the turnaround of Puma, which now has unrivaled capabilities to take full advantage of the specific dynamics of its global markets and is poised to achieve substantial growth,” said François-Henri Pinault, Kering’s chief executive officer and chairman. Artémis will become a “long-term strategic shareholder” of Puma with a 29 percent stake. #wwdnews #wwdfashion (📷: @jilliansollazzo)
The fashion world mourns for celebrated street style photographer, Nabile Quenum, who died at age 32 in Paris.
Quenum, creator of the fashion blog “J’ai Perdu Ma Veste,” was a fashion week fixture, and regularly shot for New York magazine’s The Cut, among other outlets, and brands such as Louis Vuitton, Moncler and Adidas. He was also actively involved in the #NoFreePhotos initiative, which kicked off in the fall. Read more about Quenum in @kbsmoke's story on WWD.com. #wwdnews
@verwanggang and @maisonladuree have teamed up on a dessert collab called Vera Wang Pour Ladurée. The collection, which launched this week, features a specialty macaroon, as well as a wedding cake inspired by one of the designer’s gowns. “I could not imagine a more delicate or sophisticated creation to grace any couple’s celebration,” said Wang. #wwdfashion