Sir Philip Green’s fashion brand Topshop suffered a like-for-like sales drop of nearly 11 per cent over Christmas, the most important shopping period of the year.
The Sunday Times has reported that sales across the Arcadia Group as a whole, which includes Dorothy Perkins, Wallis and Evans, fell by about 6.5 per cent.
The poor sales performance comes as Topshop tries to boost its credentials with a sportswear deal with high-profile singer Beyonce.
Green himself has become engulfed in a scandal following the collapse of the UK high street stalwart BHS.
He is currently in talks with the Pensions Regulator over contributing to the BHS pension scheme deficit.
Last year Green promised to "sort" the deficit so that BHS pensioners do not face the 10 per cent haircut to their pensions, which will be imposed if the Pension Protection Fund is forced to bail out the scheme.
Arcadia Group and Sir Philip Green could not be reached for comment.