by Apparel Resources News-Desk
14-March-2019 | 2 mins read
French Connection, the UK-based fashion retailer, has witnessed huge slump in its sales. For the year ending 31 January 2019, the retailer’s operating loss nearly tripled from £3.8 million in the previous year to £9.3 million.
In fact, the loss has been so huge that it has overshadowed the significant improvement in underlying profit.
For the first time in last 7 years, French Connection made an underlying profit of £100,000, which is in contrast to its last year loss of £2.1 million.
The sales too slumped by 10.6 per cent overall or 6.8 per cent on a like-for-like basis to clock £58.4 million.
The fashion retailer also said that its shipments to its partners in Australia and Hong Kong reduced during the year.
It is also noteworthy that the company has reduced the number of its stores by half in last 5 years and 9 more are planned to be shut down in 2019.
The wholesale sales, however, increased by 10.3 per cent to touch £76.9 million in the UK, Europe and North America, which drove group revenue up by 0.2 per cent year-on-year to £135.3 million.
“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. However, we still have a way to go to return the business to an appropriate level of profitability,” said Stephen Marks, CEO, French Connection.