Fashion retailer French Connection's annual loss narrows

Cornelia Mascio
Marzo 13, 2018

Shares in French Connection rose sharply on Tuesday after the fashion house announced that it had managed to considerably narrow financial losses a year ago - a rare piece of good news for the UK's ailing retail sector. However, the stock had initially risen to a high of 40.00p, just off its 52-week peak of 45.83p.

Revenue rose 0.5 percent to 154 million pounds.

Previous year it came under heavy fire from investors, with activist investor Gatemore Capital Management calling for a break-up of the company and for Mr Marks to give up his double role as chairman and chief executive.

Retail like-for-like sales grew 0.8pc over the year to January 31 in a "particularly challenging" United Kingdom retail market - a marked slowdown on the 4.4pc rise seen the previous year.

The fashion chain saw annual pre-tax losses almost halve to £2.3m from £5.3m the previous year as it axed loss-making stores and overhauled ranges.

Another eight stores are expected to close this year. It has already closed one store since January, and plans another five closures.

"We have made considerable progress across the group over the last year and I enter the new financial year with renewed confidence off the back of that success", said chairman and chief executive Stephen Marks.

Marks said that the group was "very close" to achieveing its goal of profitability, as it continues to close stores in the United Kingdom and find success in wholesale.

Marks commented on the current consumer climate, saying: "While it is clear that the retail market in which we are operating in the United Kingdom is unlikely to improve in the near future, we have clear visibility on the benefits we will obtain from the ongoing portfolio rationalisation". In addition the reaction to our collections and strength of our wholesale orders both for the spring and winter seasons further underpins the performance going forward.

Altre relazioniGrafFiotech

Discuti questo articolo

Segui i nostri GIORNALE