Member Article

French connection incur £7.2m losses

Retailer French Connection has reported a pre-tax loss of £7.2m in its final annual results, giving a significant dip in comparison with 2012 which saw profits of £4.6m.

Revenues were down 8% to £197.3m, however chairman and chief executive Stephen Marks insisted that measures taken to improve sales were offering results.

The store said it does not expect the changes to its retail plan to have an impact this year, however it said measures will start to impact results in the next two financial years.

Mr Marks commented: “The significant changes we have already and will continue to make will help us to improve our financial performance in this most difficult and competitive of markets.

“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.”

This was posted in Bdaily's Members' News section by Miranda Dobson .