Ailing high street retailer French Connection has posted a pre-tax loss of 7.2 million pounds over the year to January 31st. The company stated its revenues fell 8 percent to 197.3 million pounds last year from 215.4 million pounds in the previous year. Whilst it said its cash balance remains strong and the company is out of debt, French Connection's loss comes on the back of a profit of 4.6 million pounds in the year ending January 2012. It has no debt.
Chairman and chief executive Stephen Marks remained positive, and in a statement said: “to improve our financial performance in this most difficult and competitive of markets” thanks to new initiatives “to provide new impetus to sales growth”.
He added: “Although it is very early days in the new year, we have seen a better performance in UK retail, and we expect this to build as the year progresses. We are managing the business tightly in order to increase full-price sales volumes, limit discounting, manage inventory levels, control cash and build confidence with our customers.
“We have demonstrated our ability to produce fashionable, wearable products over the last 40 years and will continue to do so with a new and talented design team. With the help of the broad range of improvements in our business, a strong balance sheet and our global brand strength, we will return the business to profitability.”