French Connection in profits warning
FASHION group French Connection, which has branches here and in the UK, said 2012 profit will probably miss current market expectations, issuing the latest in a series of such alerts as challenging conditions in its core British market continue.
French Connection, whose eponymous high street clothing chain accounts for more than 90pc of its sales, said revenue dropped 9.5pc in first three months of its financial year, and it did not expect an improvement in the second half of 2012.
Shares in the company fell to their lowest level for more than two years after issuing its third profit warning in seven months.
French Connection's woes reflect tough conditions on the high street, where retailers are struggling as consumers grapple with inflation, muted wage growth, government austerity measures and worries about job security.
The company, which has a market capitalisation of just over £30m (€37m), said it was continuing with a review of its British and European business, having flagged that its smaller US operations were in better health after posting an 11pc rise in sales in the period.
The chain operates in the UK, Ireland, Spain and Portugal in Europe.
The review would help French Connection quickly identify steps it could take to improve the performance of the British and European business, it said. (Reuters)