Presentation for 12 months to 31 January 2015 (pdf)
Preliminary results for the year ended 31 January 2015 (pdf)
French Connection Group PLC
Preliminary Results for the year ended 31 January 2015
French Connection Group PLC ("French Connection", "the Group") today announces results for its financial year ended 31 January 2015.
- Continued improvement in financial performance with reduced underlying operating loss* of £(0.8)m (2014: loss £(4.4)m), in line with market expectations, driven by strong performances in wholesale and licensing, the closure of non-contributing stores, continued cost control and some margin progression in our retail operations
- Group revenue of £178.5m, down 5.8% (-4.1% at constant currency) on a reduced retail store portfolio, with 9 non-contributing stores closed during the year. UK/Europe retail LFLs of -3% and 4.6% growth in wholesale revenue (+7.3% at constant currency)
- Composite Gross Margin of 46.7% (2014: 47.6%) reflecting the higher mix of wholesale sales within Group revenue. UK/Europe retail gross margin was up 50 basis points on lower discounting, and UK/Europe wholesale gross margin up 170 basis points
- Cash position remains strong; closing net cash of £23.2m (2014: £28.2m) and no debt
Commenting on the results, Stephen Marks, Chairman and Chief Executive said:
"In spite of difficult retail trading conditions in the second half of the year, these results show that we have made another step towards returning French Connection to profitability.
The performance of our wholesale and licensing operations were both encouraging, supported by the continued strength of the French Connection brand worldwide. We have also maintained a tight control of costs and have continued to close loss-making stores.
Although we are encouraged by forward orders in our wholesale business, trading on the high street remains challenging and we are planning accordingly."
*excludes loss on store disposals and closures
Adam Castleton/Neil Williams French Connection +44(0)20 7036 7063
Tom Buchanan/Charlotte Church Tulchan Communications +44(0)20 7353 4200