New financial filings reveal that despite a 9% drop in revenues, from €51.9 million in the previous 53-week period to €47.23 million for the 52 weeks ending in 2023, River Island Clothing Company (Ireland) Ltd still posted a pre-tax profit of €7.29 million.

The retailer, which operated 23 stores across Ireland last year, reported earnings before interest, tax, depreciation, and amortisation (EBITDA) of €7.7 million—an increase of 45% from the €5.3 million EBITDA recorded in 2022.

The company’s workforce declined from 545 to 522 employees, with 149 full-time and 373 part-time staff. Despite the drop in employee numbers, staff costs saw a slight increase from €8.4 million to €8.46 million.

The directors noted that the fashion retail landscape is evolving rapidly, with customers seeking more diverse, convenient, and faster shopping experiences amid growing competition, particularly online. They also highlighted the ongoing impact of geopolitical events, including supply chain disruptions, rising energy, labor, and food prices, which have contributed to higher inflation and interest rates, weakening disposable income and consumer confidence.

The company paid €10.33 million in lease costs for land and buildings last year. Profits were bolstered by a €1.09 million onerous lease credit and a €357,000 reversal of stock impairment.

After accounting for a €1.04 million corporation tax charge, River Island posted a post-tax profit of €6.24 million. As of December, the company had shareholder funds of €18.45 million, including accumulated profits of €13.4 million, though its cash reserves dropped from €19.17 million to €12 million.