Retailing billionaire Sir Philip Green's Arcadia fashion chain is in doldrums as underlying sales were on the decline and annual dividend payment stands scrapped due to falling profits.
With like-for-like sales at Arcadia falling 1.9 percent for 53 weeks to the beginning of September, Sir Philip, who is proud of his retail expertise, has finally abandoned a payout recently.
Last year Sir Philip, who boasts the Top Shop, Burton and Miss Selfridge outlets, awarded himself a record £1.2 billion dividend, when pre-tax profits came in at £253.8 million. This year disappointing sales figures at Arcadia were down to a 20 percent fall in pre-tax profits to £202.4 million and to an 8.1 percent fall in operating profits to £300.6 million.
In a bid to retrieve the situation, Sir Philip was almost doubling his capital expenditure, to £123 million from £65 million last year, and had already committed more than £30 million to new space and refurbishments.
Inspite of the underlying fall in sales, "disciplined cost control" has helped Arcadia maintain its trading margins since beginning of its new financial year, with company's cash generation going strong and enabling continued investment in all its brands.
Despite its fluctuating fortunes this year, company has launched 46 new outlets with some 288,000 square feet and has re-located a further 20 outlets.
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
