Topshop Parent Company Will Be Struggling.

Arcadia GroupLtd., the parent company of Topshop, which has tardy in its annual performance, is suspected of struggling. The recent sales figures released by British media on the weekend confirm the dilemma of the high street retail empire.

The 7 week between black Friday November 2016 and the first week of 2017 new year,

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Same store sales plunged nearly 11%, while ArcadiaGroupLtd. group's same store sales also dropped by about 6.5%. The group also had many Dorothy Perkins, Miss Selfridge, Burton, Evans, Topman and Wallis.

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Topshop and Arcadia GroupLtd. were the worst in comparison with the weaker British high street retailers during the holiday season.

According to the data, the comparable sales of Next PLC (NXT.L) 11 and December recorded a 0.4% decline in the expected profit expectations of the country's main clothing retailer. RBC Capital Markets plus Huang capital market estimated that the same store sales of H&M fell by 3%, while BDO accounting firm estimated that the comparable sales of high street fashion retailers in December dropped 1.1% compared to the same period last year.

Marksand Spencer Group PLC (MKS.L), Marsha general store and Primark and other large retailers have made good progress.

The weakness of sales of Arcadia Group Ltd. will create greater pressure on Philip Green Philip Green, who is facing a 1 billion pound punitive fines from Britain's BHS Department bankruptcy bankruptcy.

Philip Green has denied the accuracy of the Sunday times data and is tired of the "continuous harassment" of the newspaper. He pointed out that Arcadia GroupLtd. has 28000 people working and is a private enterprise. The group has not announced Christmas sales for the past 14 years, and now it will not do so. Finally, he stressed that these figures are all wrong.

As for the full year performance as of August 2016, Arcadia Group Ltd., which published its annual report on time every November, has been postponed.

Market participants believe that in the current situation of Philip Green, if Arcadia Group Ltd. is gratifying, it must be announced.

Philip Green has said it expects to publish data after Christmas, but it has been proved to be a drag.

Philip Green has always been known as "barbarism" in the British business community, and even has the title of "tyrant".

In April 2016, BHS, which belonged to Arcadia Group Ltd., declared bankruptcy and found a pension deficit of up to 571 million.

BHS was sold by Arcadia Group Ltd. in 2015 for a token sale of 1 pounds, and BHS was closed for only a year.

The British side has sought to provide Philip Green with 350 million pounds to fill the pension deficit, and members have proposed a 3 fold penalty.

In 2002, Philip Green acquired Arcadia Group Ltd. through Taveta Investments, a family holding company's Taveta Ltd. fund. Its performance has been excellent, especially its Topshop development.

In 2012, Arcadia Group Ltd. sold 25% shares to Leonard Green&Partners of the US private equity fund for 350 million pounds, making it worth 2 billion pounds at that time.

However, sources have revealed that the privately held fund, which is always located in Losangeles, has written down Arcadia Group Ltd..

According to the world clothing and shoe net, the share of Arcadia Group Ltd. in the British 42 billion 800 million pounds clothing market has shrunk dramatically, from 6.3% in 2012 to 3.8% today.

Due to the bankruptcy of BHS, Arcadia Group Ltd. closed many licensed stores. At the end of last year, the group announced that it would deepen cooperation with Tesco PLC (TSCO:L), the largest retailer in the UK, and may open more Dorothy Perkins, Burton and Evans&Wallis brand stores in the group's supermarkets.

On the other hand, the most internationalized brand Topshop/Topman announced late this year that it wants to expand in the mainland of China.

At the end of last year, Arcadia Group Ltd. and its existing cooperation network continued to deepen its marriage on the basis of online channels to China in 2014. It plans to set up 80 physical stores in the first three tier cities in the mainland. The first store is expected to open in Beijing or Shanghai early this year.

However, the saturated clothing market, the fierce competition, the reduced market passenger flow, all make the Topshop/Topman future worried, more importantly, the brand has missed the Zara SA La, H&M Hayne Maurice, Uniqlo uniqo and Gap cover Pu and other international large fast fashion brands, such as the new sense of freshness, superiority and adhesion. Topshop/Topman is only a choice for the consumption habits and the mature Chinese middle class.

NewLook, a fellow townsman with Topshop, is also expanding rapidly in China. However, it has been observed that the flow of shops and conversion rates to stores in Guangzhou are extremely low.

According to the world clothing and shoe net, under the double pressure of fierce competition and economic downturn, Arcadia Group Ltd. recorded a 5.5% profit growth in the 2015 fiscal year ended August 29, 2015, but profits mainly benefited from the sale of loss department store BHS; total annual sales totaled 2 billion 69 million 300 thousand pounds, up 1.8% from 2 billion 32 million in the previous year.

During the period, the group's overall sales in the same store recorded a 0.7% decline, of which retail sales in the same store in the United Kingdom dropped by 0.9% compared with the same period last year, while e-commerce business recorded a 23.9% growth.

In addition, as of August 29, 2015, the group also had a pension deficit of 189 million 600 thousand.

The market estimates that in the 2016 fiscal year ending August 2016, the profit of Arcadia Group Ltd. will be reduced from 222 million pounds in fiscal year 2015 to 140 million pounds, a decrease of 40%, which is also far below the group's original target of 175 million pounds.

More interesting reports, please pay attention to the world clothing shoes and hats net.