Retail earnings dive at Burton: Group blames losses on disruptive changes
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.A PLUNGE into loss at Top Shop, increased losses at Principles and falling sales at another two of its chains contributed to a sharp fall in retail profits at Burton Group at the halfway stage.
The group blamed the losses on the disruption caused by its recovery programme. At Top Shop it introduced more fashionable merchandise and aimed at younger customers. But the increase in sales in that market failed to compensate for the decline in old customers, which pushed the group into a pounds 7.3m loss, from a pounds 1.8m profit last time.
At Principles a similar problem was caused by moving too far upmarket and offering too narrow a range, trebling losses to pounds 8.8m. Burton has now reversed these strategies and said sales in the last 11 weeks were up by 8.5 per cent at Top Shop and 6.3 per cent at Principles, excluding shop closures.
Group profits were pounds 36m on sales of pounds 1bn. That compares with pounds 24.7m last time, but that was after an pounds 11.9m exceptional reorganisation charge - excluding that, profits dipped by pounds 600,000.
The results were helped by a halving of interest charges to pounds 8.2m. Retail operating profits fell pounds 15m to pounds 39.7m.
Earnings per share were 1.9p, up from 1.4p last time, and the interim dividend was held at 1p. The shares rose 2.5p to 56.5p.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments