French Connection losses widen
Fashion retailer French Connection has seen its losses more than double in the six months to 31 July as it battled against difficult trading conditions on the UK’s high streets.
The company posted a £15.1 million statutory pre-tax loss compared to a loss of £5.9 million in the same period in the previous year.
Group revenue was down 2.4% to £58.1 million as the company reduced its store portfolio. Like-for-like sales in UK and Europe dropped by 7% in the half year.
Meanwhile wholesale revenue climbed by 6.2%, which the retailer attributed to customers in the UK and Europe with significant online businesses and to department stores in the US.
Stephen Marks, chairman and chief executive of French Connection, said: "There is no doubt that progress has not been helped by the trading conditions in which we operate in the UK, although we can take great confidence from the performance of the wholesale business and the stability of the licence income.“
The company said it is on track to make a return to profit and that changes made to the business in the last two years are continuing to move the business forward.
Marks added: “The order books we have provide a clear outlook for the second half of the year in wholesale although retail continues to be challenging. We remain on target to return the business to profitability this year and we will be doing everything we can to ensure that happens."
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