THE RETAIL BULLETIN - The home of retail news
HOME
RETAIL NEWS
RETAIL EVENTS
Fashion
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Electricals
Health & Beauty
General Merchandise
Entertainment
Sports & Leisure
Retail Solutions
Food & Drink
RETAIL INSIGHTS
RETAIL SOLUTIONS
ABOUT US
CONTACT US
SUBSCRIBE FOR FREE
French Connection vows to revive UK stores after profit fall

Fashion retailer French Connection saw pre-tax profits fall to £5 million for the year to 31 January from £7.3 million in the previous year.

CITY & CORPORATE

French Connection vows to revive UK stores after profit fall

In addition, the retailer's UK stores slumped to an £8.2 million loss as it faced higher production costs and cut margins to maintain sales.

Founder and chief executive Stephen Marks said it had been the most difficult winter season he had seen during all his years in the business  adding that the company was taking action to improve the performance of its UK operation.

Marks said: "We are very aware that there will be no quick solutions and that changes we make will take time to have an impact.

"We are working very hard on improving the performance of the retail stores, although clearly the state of the UK economy is not helping the position."

The UK/Europe wholesale channel fared better with a 17% increase in revenue on last year. The company generated an operating profit of £3.3 million in North America, an improvement over previous years. 

French Connection said its licensees in Asia and Australia continued to perform well and its joint ventures in Hong Kong and China both achieved strong growth in like-for-like sales. 

Furthermore, brand licensing income grew strongly, increasing by 47% to £8.5 million from £5.8 million last year. 

The company is planning further expansion of its international operations in the coming year and will launch a range of premium womenswear this spring. 

Marks concluded: "I expect that the UK retail environment will remain subdued over the next twelve months and we are planning accordingly.  We will, however, continue to work hard to improve our financial performance."

 

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

Retail Human Resources Summit
Retail Human Resources Summit
Wednesday 3 October 2018
The Cavendish Conference Centre, London W1
The 10th HR Summit 2018, The Cavendish Conference Centre, London W1, 3rd October 2018
The Retail Design Summit 2018
The Retail Design Summit 2018
14 November 2018
The Cavendish Conference Centre
The Retail Design Summit 2018
Omnichannel Futures Conference 2019
Omnichannel Futures Conference 2019
6 February 2019
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Summit
National Minimum Wage Breakfast Briefing
National Minimum Wage Breakfast Briefing
20 September 2018
6th Floor 1, St. Martin's Le Grand London, EC1A 4AS
National Minimum Wage Breakfast Briefing