French Connection expected to announce ninth year of losses amid turnaround plan
French Connection is set to record a ninth year of losses in its annual results this week.
However, the group is expected to point out that it is only two-thirds of the way through its programme of closing loss-making stores, which is part of a wider turnaround plan.
The company, which owns Toast, YMC and Great Plains as well as its eponymous chain, is likely to reveal that its sales have declined from last year’s £164.2m to £155m, The Telegraph reported today.
Pre-tax loss was £7.9m in the brand’s half-year results, with net cash down from £15m to £7.7m. However, retail revenues grew 6.5 per cent on a like-for-like basis in the first half, so the brand may be hoping to emphasise this positive direction in its full-year results.
Shareholders Gatemore, Zoar Invest and OTK Holdings penned a joint letter in January, warning that the company’s cash balance could dwindle to nothing by summer of this year.