FCUK profits wilt in tough environment
12 March 2008 09:14
French Connection has seen profits fall as it admitted its financial performance for the year ended January 31st "did not progress as we would have liked". The company blamed "a marked softening of the retail environment in both the UK and US towards the end of the year" for the 23% fall in profits, coming in at £3.1 million, compared to £4.0 million the previous year. Turnover fell 2% to £236.1 million from £241.3 million the previous year.
Commenting, chairman Stephen Marks said: "The results reflect some improvement in the performance of our French Connection ladies' wear ranges, a robust performance at Toast in the face of difficulties earlier in the year, a significant improvement in the North America business and continued tight cost control. These positive elements were offset by a considerably more challenging retail environment in the last quarter of the year both in the UK and the US, a decline, as anticipated, in wholesale turnover in the UK and a difficult year for French Connection men's wear.
"The continuing difficult economic environment predicted for the new year is likely to have an impact on the rate of improvement in our retail business, but we will continue to strive for growth based on our constantly evolving fashion-forward products. Further, for the first time in two years, we are seeing some improvement in the wholesale orders in both UK/Europe and North America. The final outcome, however, will depend on the general retail environment in our markets".
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