French Connection first-half revenues drop 8.7%

Revenue for the six months ended July 31, 2016 at British apparel retailer French Connection dropped 8.7 per cent to £69.2 million, compared to £75.8 million in the same period a year earlier.
The decline in sales resulted from a reduced retail store portfolio, with five non-contributing stores closed during the period.

However, like-for-like sales were up 6.5 per cent.

French Connection attributed a reduced retail store portfolio for its 8.7% sales dip – French Connection

Loss before tax in the first half of fiscal 2017 stood at £7.9 million, flat over the earlier fiscal’s first half, with an improved retail performance, offset by tougher trading in wholesale and licensing.

Gross margin in the reporting period amounted to 46 per cent, down from 45.5 per cent in the previous fiscal’s same period, reflecting the higher proportion of retail sales within revenue.

The retailer had net cash of £7.7 million at the end of July 31, 2016 vis-à-vis £15.0 million at the end of the first half of last fiscal and no debt.

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