French Connection posts 53% fall in revenue, shares fall

Entrance of French Connection Store in Blue Water shopping Mall in England.

French Connection shares (LON: FCCN) fell 16.52% on Tuesday afternoon as the group revealed pre-tax loss to widen in the six months ending 31 July 2020.

The fashion retailer posted a pre-tax loss of £13.2m. This is in comparison to the loss of £4.6m loss a year previously.

French Connection also reported a 53.1% fall in revenue down to £23.9m “predominantly owing to the impact of the COVID-19 pandemic.”

Retail revenues for the period were £10.1m, down 57.6% from £23.8m. The group said this “reflects both the lockdown period but also the permanent closure of nine retail locations in the first half.”

Stephen Marks, chairman and chief executive said: “This has undoubtedly been the most difficult trading period that the Group has ever faced and I would like to thank our staff, both those who have kept the business running and those who have been on furlough, for their ongoing commitment to French Connection.

“Despite the unprecedented difficulties we continue to face alongside the rest of the High Street, having been able to secure the necessary financing we feel that we are well positioned to navigate an extended period of uncertain consumer demand but also ready to capitalise on any opportunities that may arise especially given the good performance of wholesale, while maintaining a very tight control of costs,” he added.

French Connection shares (LON: FCCN) are currently trading -17.65% at 7,37 (1427GMT).

 

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Safiya Bashir
Safiya focuses on business and political stories for UK Investor Magazine. Her interests include international development, travel and politics.