River Island has seen operating profit plunge 90% to £7.4m as it dealt with inflation and costs to clear excess stock, despite turnover increasing 12%.
The fashion retailer, which has more than 300 stores in the UK, said it ended the year with “substantial cash reserves” despite the dip.
The business also remained positive and claimed the return of former boss Richard Bradbury as executive chairman at the start of the year meant “significant changes have been made, which are starting to bear fruit”.
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Bradbury previously served as chief executive of the company until 2010, before returning to River Island and replacing Will Kernan.
Kernan stepped down in November last year, after three years at the helm of the business.
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