Losses deepen at French Connection as like-for-like sales fall by 10.7%
Fashion retailer French Connection has reported that like-for-like-sales in the UK and Europe fell by 10.7% in the first half if its financial year as the disappointing performance of its Spring 2015 collection continued throughout the season.
The result meant that the group made a loss of £7.9 million in the six months to 31 July compared to a loss of £3.9 million in the same period in the previous year.
Group revenue fell by 9.8% to £75.8 million due to a reduced retail store portfolio and the lower like-for-like sales.
French Connection closed six non-contributing stores in the period which included three in the UK and Europe and three in North America. Further closures are planned in the second half.
Ecommerce represented 22.3% of group retail revenue compared to 22.4% a year earlier with mobile and tablet sales making up 47% of ecommerce revenue compared to 41% previously.
Stephen Marks, chairman and chief executive of French Connection, 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.”
French Connection said the recent performance of its Winter 2015 collection had been “encouraging” and that retail trading over the first six weeks of the second half was stronger with flat like-for-like sales in the UK and Europe, and within that full price like-for-like sales growth of around 6%.
Looking ahead Marks added: “It’s been a tough trading period for us and the High Street generally and we have responded accordingly to ensure we deliver improvements going forwards.
“We are pleased with the recent change of trend 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.”
