French Connection posts reduced losses in interim results
09:12, 12 October 2021
UK based global retailer French Connection has reported reduced losses in its interim results compared to 2019 – after cutting its shop portfolio and temporarily closing stores due to Covid-19 restrictions.
For the six-month period ending 31 July 2021, revenue dropped 21.2% to £40.2m compared to the year before last.
The group said in a statement on Tuesday that the weak performance was partly offset by strong trading in its wholesale and e-commerce arms.
Underlying loss came in at £900,000 from £3.6m in 2019 – and overheads were reduced to £15.2m (2019: £27.3m), due to the permanent and temporary store closures, restructuring initiatives – and a tight focus on all costs as well as some Covid-19 relief, the retailer said.
Founder steps down
Meanwhile, the company’s chairman and CEO, Stephen Marks, announced at the same time as posting the latest result that he is stepping down.
“I am pleased that the improvement in business we saw in the early part of the period has continued throughout the first half of the financial year. Wholesale in both the UK and the US has performed well, with a good outcome to the summer season.
“Over the last five years, French Connection has made significant progress in its plans to rationalise the size of its store portfolio and to return the Group to profitability.
“Following completion of the transaction, I will retire from French Connection. This is an appropriate time for me to step back from the business that I founded in 1972, and I would like to take this opportunity to thank all our people for their contribution to our achievements over the years. I wish them all every success in the future,” Marks concluded.
Shares in French Connection were flat at 29.00p on the London Stock Exchange on Tuesday morning.
Read more: Sterling falls as doubts over near-term UK rate hikes grow
Related topics
Comments
Please note before commenting
There are currently no responses for this story.
Be the first to respond.