French Connection battles challenging times

Thursday, 26 November 2009
Sales in the UK and Europe retail division grew by 0.6 per cent in total and 0.3 per cent on a like-for-like basis down from growth of 1
per cent in the same period last year.

The wholesale business in UK and Europe saw an 11 per cent decline, North America declined by 7 per cent in total and 4.7 per cent on a like-for-like basis in the sixteen week period.

The business in Japan is in the process of termination and the group expects that the stores will be closed by the end of February 2010. This business was forecast to generate a loss of £2.5 million in the year to 31 January 2010 and the cash cost of the closure is expected to be less than £0.5 million.

"French Connection ladies' wear continues to show growth in UK/Europe retail, Toast has performed very well and all of our ecommerce businesses have shown encouraging increases in revenue. However, men's wear continues to be challenging and markets in North America and Japan remain soft" it said.

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