French Connection has reported a pre-tax loss of £7.9m during its first half following “disappointing performance” of its spring collection.
- French Connection reports loss after “disappointing” spring
- Like-for-likes in UK and Europe fall 10.7% in first half
- But boss Marks hails “encouraging” signs of sales growth during past six weeks
The fashion retailer and brand’s sales dipped 9.8% to £75.8m in the six months to July 31 after like-for-like retail sales in the UK and Europe slumped 10.7%. It meant its losses widened from £3.9m during the same period last year.
French Connection said this was because of a “stronger competitive” in 2014, when like-for-likes rose 6%.
But it said retail trading during the first six weeks of its second half had “been stronger”, with UK and Europe like-for-like sales holding flat amid “encouraging” performance of its winter range. Full-price like-for-likes are up around 6%, French Connection added, although boss Stephen Marks warned that trading remains “unpredictable”.
The group’s wholesale division also suffered a 2.6% fall in revenue during the six-month period, despite a 4.7% increase in the UK and Europe.
French Connection chairman and chief executive Marks said: “As anticipated in our April trading update it has been a tough trading period for us and we have responded accordingly to ensure we deliver improvements going forwards.
“We have already closed six stores during the period, with more targeted in the second half. We have also made operational and personnel changes to drive improvements in performance, notably in both design and merchandising.
“We are pleased with the recent change of trajectory in UK/Europe retail performance, particularly given soft trading on the high street in August. Trading, however, is unpredictable and we are as ever dependent on the Christmas selling period.”
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