River Island has filed its accounts for 2023 and they show the company swinging to pre-tax loss of £32.2 million, compared to a profit of £7.5 million a year earlier.

The loss came as the company’s turnover for the year fell by 15.1% to £701.5 million after adjusting for the impact of the previous year being a 53-week period compared to 52 weeks this time. 

The reduction in sales, as well as inflation in the cost of goods and the cost of clearing excess stock, meant that gross profit was reduced to £46.7 million from £75.8 million.

Combined with operating costs rising (mainly due to wage increases) the company also reported a loss after tax of £24.4 million, down from a profit of £5.5 million in the previous year.

It emphasised that it continue to operate with a strong cash and balance sheet position, ending the year with £63.1 million of cash (admittedly down from £110.9 million a year earlier) and net assets position of £198.3 million (down from £226.6 million).

The company’s store football fell 10.6% during the latest year with visitor traffic down to 96 million visits.

River Island said that 2023 was a year of “reset for the business”. Its product ranges were refocused and a new leadership structure was put in place with several key senior hires. The business also invested in its customer proposition with “stronger product ranges, an enhanced environment and an elevated digital experience”.

And that appears to be more than just hyperbole with the company saying it’s now starting to see the benefits from the investment with customers “reacting positively”, something that’s delivering “improved business performance”. And despite the challenging trading environment in 2024 so far, the company said it remains positive about the outlook.