They may seem to be an unlikely army to come to the rescue of ailing high street retailers, but Britain's dedicated followers of fashion have charged in where their elders fear to tread to keep the tills clicking at Debenhams and Arcadia.

As middle-class consumers brace themselves for economic meltdown, their sons and daughters — free-spending students and fashion-conscious twentysomethings — are splashing out on clothes and accessories. Both chains said yesterday that the young and trendy were the sole bright spots of a troubling financial year.

Sir Philip Green, owner of Arcadia, the group behind chains from Topshop to Dorothy Perkins, said that spending by younger customers was at a record level while elsewhere spending was in decline. Topshop, Topman and Miss Selfridge, the chains aimed at younger shoppers, reported record turnover and profit.

Sir Philip also disclosed that Kate Moss, the model who has designed four lines of clothing for Topshop, wanted to do a men's range as well. “She's asked me to do a men's range. She said: 'Come on.' And I said: 'Let's stick to what we're doing,' ” he said. However, Sir Philip did not rule out the possibility of Ms Moss designing men's clothes.

He was speaking after revealing a 5 per cent fall in pre-tax profit for the year to August 30, with like-for-like sales down 2.8 per cent. Profit for the year was £189 million. He will not take a dividend from the business for the third consecutive year.

Sir Philip thanked the younger customers who have doggedly kept buying in the face of financial chaos — unlike their older counterparts at Burton, Dorothy Perkins, Wallis and Evans: “Our leading fashion brands — Topshop, Topman and Miss Selfridge — had an excellent year, producing record turnover and profit. The mainstream brands had a more challenging time. In the mass-market, you buy because you need something. If you're a fashionista, you buy because it's in fashion.”

Topman was the star performer, posting “double-digit” growth, Sir Philip said.

Ian Grabiner, chief executive of Arcadia, said that customers of Topman, Topshop and Miss Selfridge were free from the financial anxieties of their parents because their disposable income is holding up. “The students who work for us on a Saturday or Sunday, all they do is spend money in our shops,” he said. “My daughter works in a Topshop and never comes back with any cash, only clothes.”

He added that boxer shorts were selling well: “You see the kids nowadays showing boxers above their trousers, so it has become a value area.”

In the run-up to Christmas, Sir Philip is hoping for a cold snap to jump-start spending on winter clothing. “When the market's quite tough, like it is, the one thing you need is seasonal weather. You need it to be warm in summer and cold in the winter,” he said. “If there's somebody out there who could create it, I would be eternally grateful for a cold snap.”

He refused to predict the Christmas performance of retailers. “How can anybody now, without putting a rope around their necks, call Christmas?”

Younger shoppers also helped to salvage Debenhams, which yesterday slashed its full-year dividend after profits fell 16 per cent to £110.1 million. Rob Templeman, chief executive, said: “Anything fashionable is selling but products such as coats and knitwear are only selling when it's cold. We think it's going to remain tough.”

Mr Templeman said that Christmas gifts were already doing well as customers started their festive shopping early.

Times Recommends

• C&G axed - 1,660 jobs to be lost
• UK house prices rise 1.1% as buyers return
• Mixed reaction to US banks repaying bailouts