French Connection sales soften
Strong performance in UK retail sales in the first weeks of the new season replaced by softer results more recently.
In the first sixteen weeks of the second half of the financial year starting on 1 August 2008, sales in the UK/Europe retail division (accounting for 49 per cent of Group turnover) grew by 3.7 per cent in total and grew by 1.0 per cent on a like-for-like basis.
In North America (accounting for 14 per cent of Group turnover) the retail business has deteriorated since the first half in line with the general retail market in the region. Retail sales in Dollar terms have fallen by 12 per cent in total and 10 per cent on a like-for-like basis in the sixteen week period and margin has also been impacted.
‘As with many retailers, the Christmas trading period is key to our results for the year and the significant downward trend in sales in recent weeks indicates that we should be cautious in our expectations, despite the good start to the period in UK/Europe retail’, the group said.
