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French Connection posts smaller loss on wholesale gains

Published 17/03/2015, 07:53
© Reuters.  French Connection posts smaller loss on wholesale gains
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(Reuters) - British fashion retailer French Connection Group Plc (L:FCCN) reported a smaller loss, helped by an improvement in its wholesale division and higher global licencing income.

The company reported an underlying operating loss of 0.8 million pounds for the year ended Jan. 31, compared with the loss of 4.4 million pounds a year earlier. Revenue fell 5.8 percent to 178.5 million pounds.

British retailers had a tough second half partly due to a mild autumn that hit sales of winter fashions. Muted wage growth has also forced consumers to keep spending under control.

The London-based company, which has been attempting a turnaround after years of underperformance, is trying to win customers by redesigning product ranges and closing unprofitable stores.

The company, which operates retail and wholesale businesses in the UK, Europe, United States, Canada, Hong Kong and China, closed 9 stores during the year.

French Connection said wholesale revenue - selling its products to retailers in 60 countries around the world - rose by 4.6 percent to 75.2 million pounds. Wholesale segment accounts for about 40 percent of the company's sales.

Shares in French Connection closed at 61 pence on Monday on the London Stock Exchange, valuing the business at 58.5 million pounds.

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