Profits at River Island retail chain decline by 39% as revenues slip 9%

PRE-TAX profits at the Irish arm of clothing retailer River Island last year fell 39% to €7m.

Accounts just filed with the Companies Office show that British-owned River Island Clothing Co (Ireland) Ltd’s revenues in the year to the end of December 25 last dropped 9%, from €91.3m to €82.5m.

The company’s turnover arose solely from the sales of clothing in Ireland. At the end of last year, it operated 23 shops across Ireland.

In the accounts, the directors said that “turnover and margin in the first part of 2011 is satisfactory”.

The company employed 1,131 full-time and part-time staff during 2010 — a decrease of 11% on the 1,278 employed in 2009.

The profits take account of non-cash depreciation and amortisation items totalling €3.6m.

As of December 25, 2010, accumulated profits stood at €93.5m.

The company recorded a dividend payout of €950,000 in 2010.

Pre-tax profits dropped by 39% from €11.5m to €7m last year — pre-tax profits in 2008 stood at €23.5m.

The chief factor behind the drop was the company’s gross margin decreasing from 15% in 2009 to 9.5% last year.

River Island’s cost of sales came to €77.4m in 2009, compared with €73.9m last year. Distribution and administration expenses dropped from €2.4m to €1.6 million last year.

The firm’s operating profit dropped by 38% from €11.5m in 2009 to €7m last year.

The company made about €12.7m in payments under operating leases for land and buildings last year, compared with €11.9m in 2008.

Staff costs came to €13.4m last year — an decrease of 8% on the €14.6m in 2009.

The filings show that numbers employed by the company decreased last year from 1,278 to 1,131, with the numbers of full-time staff declining from 300 to 266 and part-time declining from 978 to 865.

The accounts also show that directors’ emoluments last year decreased from €210,256 to €172,199.

More in this section

The Business Hub
Newsletter

News and analysis on business, money and jobs from Munster and beyond by our expert team of business writers.

Sign up
Puzzles logo
IE-logo

Puzzles hub

Visit our brain gym where you will find simple and cryptic crosswords, sudoku puzzles and much more. Updated at midnight every day.

Lunchtime
News Wrap

A lunchtime summary of content highlights on the Irish Examiner website. Delivered at 1pm each day.

Sign up
Revoiced
Newsletter

Our Covid-free newsletter brings together some of the best bits from irishexaminer.com, as chosen by our editor, direct to your inbox every Monday.

Sign up