French Connection makes return to profitability
French Connection has made a return to profitability in the year to 31 January with the company making an underlying operating profit of £0.1 million compared to loss of £2.1 million in the previous year.
However, like-for-like sales were down 6.8% which the company attributed to difficult trading conditions in the UK. When adjusting items were included, French Connection reported an operating loss of £9.3 million compared to £3.8 million in the prior year.
Meanwhile, group revenue edged up 0.2% to £135.3 million in the period.
Stephen Marks, chairman and chief executive of French Connection, said: “I am pleased to report that we have achieved our target of returning the group to underlying profitability this financial year.
“This is only part of our overall journey, however it represents a significant achievement given the results over recent years. This has been achieved despite the ongoing difficult retail trading environment in the UK and is the result of the changes we have made in all areas of the business to adapt to the ever-evolving markets in which we operate.”
The company said its retail business is continuing to benefit from its ongoing store rationalisation programme after it closed 10 “non-contributing” stores in the year.
Wholesale revenue increased by 10.3% in the period due to continuing strong growth in the UK, Europe and the US.
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