Losses mount at French Connection
Group income slumped by fifty three.one% 12 months on 12 months to £23.9m.
Wholesale revenues fell 49.3% to £13.8m, while retail revenues were being down 57.six% to £10.1m as both equally its stockists and its very own outlets were being pressured to briefly near for the duration of lockdown. Some deliveries were being preserved to on line operators for the duration of the interval.
French Connection permanently shut 9 outlets for the duration of the initial half.
The company said the drop in sales and ensuing further just one-off stock provisions were being partly offset by price price savings across all areas. These involved lease reductions negotiated with landlords, premiums and furlough guidance.
In July, French Connection secured £15m in funding from expenditure and turnaround professional Hilco Money for the coming two several years, to aid it experience out the Covid-19 pandemic.
The retailer shut the six-thirty day period interval with a funds sum of £5.2m, in comparison with £10m in 2019. It said existing investing is in line with anticipations.
Chairman and CEO Stephen Marks said: “This has unquestionably been the most tricky investing interval the team has ever faced and I would like to thank our personnel, both equally these who have kept the business functioning and these who have been on furlough, for their ongoing dedication to the business.
“Our priority as a result of this time has been the protection and wellbeing of all our personnel, customers and business companions. As we have been in a position to safe the funding required, we consider that we are effectively positioned to navigate an prolonged interval of uncertain purchaser demand from customers but also ready to capitalise on any prospects that could occur particularly specified the great overall performance of wholesale, while protecting a quite limited control of costs.”
