French Connection swings to full year loss
French Connection has swung to a full year loss after trading was impacted by planned store closures and difficult trading conditions in the UK.
The fashion retailer made an underlying loss of £2.9 million in the twelve months to end January compared to a profit of £0.8 million in the previous year.
Meanwhile, revenue declined by 11.4% to £119.9 million in the period.
Stephen Marks, chairman and chief executive of French Connection, said: “The performance this year has not been as anticipated and we are 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 USA and we have good forward order banks 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.”
The company said trading in its second half had been considerably worse than expected, particularly in the fourth quarter.
Looking ahead, Marks said French Connection’s UK trading environment is unlikely to improve in the short term. He added: “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.”
