Presentation for the six months to 31 July 2017 (pdf)
Interim results for the six months ended 31 July 2017 (pdf)
French Connection Group PLC
Interim Results for the six month period ending 31 July 2017
“Improved performance across all divisions”
French Connection Group PLC ("French Connection" or "the Group") today announces results for the six month period ending 31 July 2017.
- Group revenue of £68.1m (2016: £69.2m) down 1.6% (-4.2% at constant currency1) with the improvement in Wholesale offset by a reduced store portfolio
- Growth in Wholesale with revenue up 7.2% (up 2.6% at constant currency)
- Improved contribution in Retail with operating loss reduced by 18.3%
- Return to growth in Licensing with income up 8.3% in the period
- UK/Europe Retail LFL2 sales broadly flat with an improved margin rate due to lower levels of promotional activity
- Composite gross margin of 45.7% (2016: 46.0%) as a result of Wholesale making up a larger proportion of Group sales
- Continued control of costs with London head office space reduction in the period
by the improved trading performance
- Reduced Group operating loss before taxation of £5.7m (2016: £7.9m)
- Closing net cash of £6.7m (2016: £7.7m)
Commenting on the results, Stephen Marks, Chairman and Chief Executive said:
“We have definitely seen momentum build in the first half of the new financial year with improvements across all the divisions despite difficult trading conditions. With full price sales in Retail up during the early part of the second half, combined
with the strong Winter 17 order books in Wholesale and very strong reaction to the Spring 18 collection, I am confident that we will see a good performance during the rest of the year.
We have been working with the goal of returning the Group to profitability as soon as possible and, while there is still much to do, I believe that we have made significant steps to achieve that in the near future.”
Alternative performance indicators for the 26 week trading period are outlined below:
||Six months 31 July 2017 £m
||Six months 31 July 2016 £m
|Retail LFL (%)
|Average UK/Europe retail trading space (sq.ft. ‘000s)
|Average Group retail trading space (sq.ft. ‘000s)
1. Constant Currency is calculated by translating the half-year ending 31 July 2017 at 31 July 2016 rates to remove the impact of exchange rate fluctuations.
2. LFL or “Like-for-Like” sales growth is defined as the year-on-year
sales growth for owned stores and concessions open more than one year, including ecommerce revenues, removing the impact of closed stores and reported in constant currency.
The Directors believe these measures are best reflective of how the business is managed and are informative to shareholders in understanding the performance of the business.
||+44(0)20 7036 7063