Six months ended 31 July 2020 haven’t, as expected, turned out to be good for the UK-based apparel retailer French Connection.
The retailer made an underlying loss of £12.2 million in the 6-month period – compared to a loss of £3.6 million made during the same period last year.
Not surprising considering the significant decline the retailer has seen in its sales for most part of the year owing to the pandemic.
With the stockists and its own stores forced to temporarily shut down at the time of lockdown, the wholesale and retail revenue too were hit massively.
While wholesale revenue dropped by 49.3 per cent to clock £13.8 million, the retail revenue slumped by 57.6 per cent to touch £10.1 million.
The Group revenue too fell, during the same period, by 53.1 per cent year-on-year (Y-o-Y) to register £23.9 million.
Add to all this, the retailer also had to permanently shut down 9 stores in the first half of the year.
However, the retailer said that fall in sales and consequent one-off stock provision were offset partly by saving costs across other areas, including negotiations with landlords over rent reductions.
Notably, French Connection closed the half-yearly period with cash of £5.2 million. Though it’s less than what it was in 2019 (£10 million) , the retailer said that the trading was going as expected.
Founded in 1972, the retailer owns brands such as Toast, YMC and Great Plains.
