River Island has swung to a loss amid falling sales and rising costs from the continued roll out of its new concept stores.
The fashion retailer posted a pre-tax loss of £32.2m in the year to 30 December, compared to a profit of £7.5m in the previous year.
It comes as sales plunged 15% to £701.5m, down from £825.8m, which it attributed to increased competition and customers looking for “more diverse, convenient and speedier” shopping experiences.
River Island labelled 2023 as a “year of reset” as it continues the roll out of its new concept stores and having “re-focused” its product ranges.
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It warned that ongoing “disruptions” in the Red Sea had led to a lack of ships that could cause stock build-ups, shortages and delays in its supply chain.
As such, the retailer said it was investing in its store estate and technology, as well as expanding its wholesale offer.
River Island said in a filing to Companies House: “The business has invested in customer proposition − with stronger product ranges, an enhanced shopping environment in stores and an elevated digital experience.
“The business is now starting to see the benefits from the investment. Customers are reacting positively and that is delivering improved business performance.
“Despite the challenging trading environment so far this year we remain positive about the outlook.”
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