Topshop's Parent Company Sees Yearly Profits Drop

But it's continuing to invest heavily in its star brand.
Avatar:
Eliza Brooke
Author:
Publish date:
Social count:
916
But it's continuing to invest heavily in its star brand.
Cara Delevingne takes to the runway at Topshop's spring 2015 show. Photo: Anthony Harvey/Getty Images

Cara Delevingne takes to the runway at Topshop's spring 2015 show. Photo: Anthony Harvey/Getty Images

Topshop may appear to be well on its way to global domination, but the British brand's parent company, Arcadia Group, didn't have an entirely stellar year. 

The company saw pre-tax profits for the year ending August 30 drop to £143.1 million (roughly $224 million) from £148.1 million the year prior. Overall sales clocked in at £2.7 billion, up a smidge from £2.68 billion last year.

In addition to the much-loved Topshop and Topman, Arcadia also owns brands like Miss Selfridge, the high street retailer Wallis and the department store chain BHS. While Arcadia doesn't break out most of its properties' performances, that last one got a call-out for having had a particularly rough year.

Meanwhile, Arcadia continues to pour money into its headlining brand, Topshop. During the year it opened three new stores in the U.S. — including a 40,000-square foot Fifth Avenue location that has the distinction of being the second largest Topshop in the world — with more to come by spring 2015 in Houston and Atlanta. 

And while Arcadia continues to extend Topshop's reach through franchise outlets around the world — 55 locations opened in 2014 — the first company-owned store in Europe is slated to open in Amsterdam this February.