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French Connection revenues fall as brand shuts stores | Business News

By September 17, 2019 No Comments
A French Connection branch in London

Sales at French Connection fell in the first half of the year, with the brand conceding that it was struggling to find a buyer.

Revenues slipped to £51m, down 12.2% from £58m in 2018, after the fashion retailer closed nine branches.

French Connection blamed the drop in revenue on the “ongoing reduction of the store portfolio”.

The company was also able to trim its losses by £200,000 to £5m.

Stephen Marks, chairman and CEO of French Connection, said: “I am pleased that the changes we have made to the business over the last few 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 our retail performance has been resilient, overall the wholesale business is strong and we continue to see good stability in the licence income.”

According to the company’s financial statement, it is optimistic about the second half of the year.

“The order books we have provide a clear outlook for the second half of the year in wholesale but it appears that retail conditions will continue to be challenging. Underpinned by these results we remain fully on track to achieve our expectations for the financial year”, said Mr Marks.

The company also said that it expected to finalise talks with a potential buyer by the end of this year, noting that further time was required to bring the process to a “successful conclusion”.

“[We] expect the process to be concluded by the end of our current financial year,” it said.

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