River Island mulls store expansion after return to profit

The fashion retailer delivered a pre-tax profit of £11.6m in 2025, up from a loss of £124.3m the year before, in what chief executive Ben Lewis described as a “year of significant progress and transformation”.

River Island found itself on the brink of administration last July/August, as rising costs and poor sales threatened to push the fashion brand over the edge.

The retailer entered into a restructuring plan, which resulted in the closure of 33 of its 250 stores, the loss of hundreds of jobs, and steep rent reductions across the rest of the estate.

River Island said trading profit had improved “significantly” due to stronger full-price sales and less markdown activity.

Total sales declined during 2025 due to a weak first half, but sales from continuing stores showed encouraging signs as the benefits of the transformation plan began to bed in in the second part of the year.

River Island chief executive Ben Lewis said: “2025 was a year of significant progress and transformation for River Island. We took decisive action to strengthen the business, improve profitability, and create a more sustainable platform for future growth.

“The turnaround we have delivered is the result of a huge amount of hard work across the business. 

“We improved product profitability, simplified the organisation, reduced costs, and strengthened our operating model.

“While there is still more to do, these results demonstrate that our transformation plan is working and that River Island is moving forward from a much stronger position.”

Looking ahead, River Island said the retail environment remains challenging between increased pressure on consumer spending and rising operating costs.

However, it remains focused on its transformation programme, investing in product, technology, and customer experience. It added that it was exploring opportunities to expand the store estate in the UK and Ireland.