Retail Detail. Are They FCUKed?: Profits Plunge at French Collection. Second City Style Fashion Blog

March 15, 2007 • Fashion


The Times reports that the French Connection’s profits fell by two thirds due to "it’s disastrous spring/summer collection." Although the claim is that this was in line with their forecasts, their chairman Stephen Marks was optimistic about the upcoming season and cited the general growth in the UK’s fashion industry that would fuel the brand’s recovery.
From the
The retailer, which is frequently said to be the subject of takeover interest from Baugur, the Icelandic investor, which owns 20 per cent of the company through its Unity vehicle, said that profits for the year to end-January had collapsed to £4 million, from £12.2 million last time, after its spring/summer collection failed to impress shoppers.
The company noted that the figures were in line with forecasts.
The shares slipped nearly 3%, or 5.75p, to 217p in morning trade, despite the company moving to reassure investors that the new financial year had started well.
Stephen Marks, the chief executive and majority owner of the retailer, said: “While there remains much to achieve, the new financial year has started with good growth in our UK retail stores, and we believe we are now in a position to build momentum on this encouraging start to the year.”
Mr Marks said the company was confident that a 10 per cent increase in like-for-like sales at its stores in the UK and Europe represented “the early signs of approaching a turning point in the group’s financial performance”.
He added that although the company was expecting “sustained growth” in its retail business, the struggling wholesale side of the enterprise would recover at a slower pace…..
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–Joanne Molina for Second City Style

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