French Connection losses deepen as it rues tough trading environment
Retailer French Connection said it was still on track to return to profitability by the end of the year despite reporting declining revenues.
Its shares took a six per cent hit on Thursday morning after the update.
The figures
Group revenues took a 2.4 per cent hit to fall to £58.1m, as the company said growth was affected by a reduced store portfolio and difficult trading conditions.
Like-for-like sales fell seven per cent, a sharper drop than in 2017, when it fell 4.1 per cent.
Underlying operating loss before taxation reduced to £5.5m, a slight improvement of £400,000.
Why it's interesting
French Connection, like countless retailers is feeling the squeeze on the high street. In the last six months, two non-contributing stores have closed, although the company did open another shop in that time.
It flogged off its brand Toast back in April, netting it proceeds of £11.7m, which it said offset "onerous retail leases and debt impairment".
The news comes as a number of retailers have been forced to shut their doors this year, including House of Fraser, Argentinian steak restaurant Gaucho and Jacques Vert.
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What French Connection said
Stephen Marks, chairman and chief executive 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 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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