French Connection sales fell for the year, despite returning to a modest profit of £100,000, according to the company’s preliminary annual results.
The struggling high-street retailer said like-for-like sales fell by 6.8% in the year ending 31st January 2019, compared to a year ago, amid declines in sales both in store and online.
French Connection also reported a profit of £100,000, against a loss of £2.1 million, and also marking its first profit in seven years.
Despite the modest return to profit, French Connection listed itself up for sale last year, as it continues to struggle amid a ‘difficult trading environment’.
As a result, the retailer closed 10 underperforming sites and concessions last year.
Founder Stephen Marks, who is currently Chairman and Chief Executive, commented:
“I am pleased to report that we have achieved our target of returning the Group to underlying profitability this financial year.
This is only part of our overall journey, however it represents a significant achievement given the results over recent years.
This has been achieved despite the ongoing difficult retail trading environment in the UK and is the result of the changes we have made in all areas of the business to adapt to the ever evolving markets in which we operate.
While we still have a way to go to return the business to an appropriate level of profitability, I believe that we have made and continue to make significant progress.”
Shares in the company (LON:FCCN) are currently +3.77% as of 11:42AM (GMT).
