Beyonce to launch new brand Parkwood Topshop Athletic with Sir Philip Green’s retail empire as profits edge higher
Sir Philip Green said profits for his retail empire that included Topshop and Dorothy Perkins edged higher last year against a background of a “fast changing” retail industry.
The tycoon also revealed a new joint clothing venture with singer Beyonce to produce a new “athletic streetwear brand” called Parkwood Topshop Athletic. The global venture is expected to launch in the spring of next year.
Taveta Investments Limited, the company that holds Green's retail brands, reported a pre-tax profit of £202m for the year to 30 August, up from £198m the prior year. Sales were almost unchanged at £2.07bn compared with £2.03bn last time.
UK retail like-for-like sales declined by 0.9 per cent while total underlying sales fell by 0.7 per cent.
Green finally washed his hands of BHS earlier this year after selling the troubled fashion and homewares chain to a little-known group of investors called Retail Acquisitions for a £1.
He has also been closing stores when leases expire, with 86 sites shut last year. It now has 2,358 stores in the UK trading under brands including Topshop, Topman, Burton, Dorothy Perkins, Evans and Miss Selfridge.
Green said he was pleased “to report strong cash generation of £328m, against the background of the fast changing retail industry”.
“The number of channels through which customers choose to purchase and engage with us continually evolves, thus increasing the complexity of our operations. Hence our continued investment in the business as our need for efficiency and speed to market is paramount,” he added.
The group has been expanding his empire in the US since selling a 25 per cent stake in his Topshop and Topman business to private equity group Leonard Green and Partners' in 2012.
In the year, five new Topshop/Topman standalone stores were opened, including the 40,000 square feet flagship on 5th Avenue in New York. It now has nine wholly-owned stores as well as 94 concessions in Nordstrom department stores.