French Connection revenue down 40% as lockdowns hit sales
French Connection saw its revenue decrease by 40.4% to £71.5 million in the year to 31 January after trading was hit by Covid-19 lockdowns and reduced demand from wholesale customers.
The company posted an underlying loss of £11.7 million in the period compared to a loss of £2.9 million in the prior year which French Connection said was driven by the decline in sales and additional one-off stock provisions.
Retail revenues dropped by 51.8% to £22.5 million, although online sales climbed by 7.1% as customers bought more homewares and casual clothing.
Wholesale were also down, falling by 33.1%.
Stephen Marks, chairman and chief executive of French Connection, said: “Our key focus for the year has been to navigate our way through the difficult challenges we have faced as a result of the Covid-19 pandemic.
“Initially we worked with our key stakeholders to stabilise the business and secure new financing. Trading had been broadly in line with our expectations at the time of the financing but we were then hit by the second and third national lockdowns in the UK.
“Given the new financing, together with the actions being taken to optimise sales, tightly manage costs and preserve cash, we are confident that the group is well positioned to navigate any further period of uncertain consumer demand.”
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