French Connection getting back on track
Restructuring has a positive impact for the company as it announces its interim results for the six months ended 31 July 2010
Turnover for the group increased 4% to £96.2 million (2009: £92.3 million. Gross margin increased 2.4% points to 52.5%. Profit before tax was £0.2 million (2009: (loss of £5.4 million).
Stephen Marks, Chairman, commented on the results, ‘I am pleased with the substantial improvement in operating results and confident that French Connection is now back on track. The restructuring arising from our strategic review is nearly complete and we are at the beginning of a new period of growth as evidenced by our new licence agreement with Li & Fung in North America.’
‘The steady improvement in trading in our UK/Europe retail business continued during the six month period with an increase of 3% in like-for-like retail sales. This included good growth in French Connection men's wear with ladies' wear slightly ahead driven by particularly good growth through e-commerce. Similarly, wholesale deliveries in UK/Europe were 9% ahead. The North America businesses have also generated improved results in the period.’
‘Although our outlook for trading in the second half remains cautious, the improvement we have achieved in the first half of the year along with the reduced cost base following the restructuring allows us to be confident that we will show progress for the year as a whole.’
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