Friday 24 May 2019

Losses increase at French Connection amid 'difficult trading conditions'

(Nick Ansell/PA)
(Nick Ansell/PA) Business Desk Business Desk

Fashion retailer French Connection has reported a pre-tax loss of £15.1m (€17m) for the six months to July 31, against losses of £5.9m a year earlier.

On an underlying basis, half-year pre-tax losses narrowed to £5.5m from £5.9m a year ago.

French Connection said like-for-like sales fell 7pc across the UK and Europe in "difficult trading conditions".

But it saw wholesale revenues rise 6.2pc, or 8.9pc with currency movements stripped out.

Stephen Marks, chairman and chief executive of French Connection, said: "I am pleased that the changes we have made around the business over the last couple of years continue to move us forward.

"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."

Press Association

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