Group revenue at French Connection dropped to £119.9 million for the year to 31st January as stores closed and the trading environment became more difficult. This resulted in an underlying loss of £2.9 million compared with a profit of £0.8 million in the previous year. There was a like-for-like decline in UK and European sales of 2.5 per cent, with overall wholesale revenue down by 4.8 per cent, however, there was a rise of 15.7 per cent in North America. A total of eleven stores and three outlets were closed during the year.
French Connection had been seeking a buyer but this was not successful so it is instead focusing on investment in its online capabilities and growing its wholesale business whilst continuing to monitor store performance.
‘Stephen Marks, chairman and CEO, French Connection commented: “The performance this year has not been as anticipated and we’re not being assisted by the continued difficult trading conditions in the UK and potential uncertainty due to the Covid-19 coronavirus. I am, however, pleased with the continued good performance of the wholesale business in the US and we have good forward order books in the UK to be delivered during the first half of the year. The initial reaction to the winter ranges has been positive, particularly at our recent New York Fashion Show.
“We believe that the trading landscape in the UK is unlikely to improve in the short term and this has a potential impact on both the retail and wholesale businesses. Against this background, we are working hard to ensure we are operating as efficiently and cost-effectively as possible while working closely with all our trading partners to maximise business with them.”
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