Topshop and Topman made a combined loss of £10.8m in the year to 28 August 2017 as they were hit by tough high street trading and exceptional charges relating to leases on loss-making stores.
The brands, which are the flagships of Sir Philip Green’s Aracadia empire, absorbed exceptional charges in the year of £12.6m in relation to fixed asset impairment and provision for “onerous” leases. The exceptional items were non-cash in nature.
Sales at the two brands reached £934m down from £990m in 2016 while the £10.8m loss compares to a £59m profit in the prior year. The accounts, just filed at Companies House, demonstrate that the two brands were responsible for much of the profit drop at Taveta Investments, parent of Arcadia, which was revealed last week.
Taveta’s operating profits were down 42% year-on-year to £124.1m compared to £215.2m in the prior year. Sales at the group, which also includes Miss Selfridge, Dorothy Perkins, Wallis, Burton, Evans and Oufit, were down 5.6% to £1.9bn.
Sir Philip Green carried out a complete change of guard at the head of Topshop and Topman last year. Paul Price, the former chief merchandising officer of Burberry, was appointed CEO of the two brands last September. A new global creative director for the two brands, David Hagglund, arrived just before him and a new global design director, Anthony Cuthbertson, was appointed in November.