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4-Traders Homepage  >  Equities  >  London Stock Exchange  >  French Connection Group    FCCN   GB0033764746

FRENCH CONNECTION GROUP (FCCN)
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UK fashion chain French Connection racks up narrower loss

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09/19/2017 | 03:38pm CET
A person walks past a French Connection store in London, Britain

British fashion retailer French Connection Group Plc (>> French Connection Group) reported a narrower operating loss for the first half and said it was making progress in its attempt to return to profitability.

British fashion retailer French Connection Group Plc (>> French Connection Group) reported a narrower operating loss for the first half and said it was making progress in its attempt to return to profitability.

The owner of the Toast, French Connection and Great Plains brands has been struggling to fend off competition from fast-fashion rivals, such as ASOS (>> ASOS plc) and Inditex's (>> Inditex SA) Zara. It has closed stores and hired new management and design teams as it tries to turn the corner.

In March activist investor Gatemore Capital urged the loss-making company to split itself or spin off its Toast brand, among other options. It offloaded its entire stake in July, saying it was not satisfied with the pace of change at the 45-year old retailer.

British billionaire Mike Ashley's Sports Direct International (>> Sports Direct International) currently holds a 27.04 percent stake in French Connection and is the second-largest shareholder in the company. Sports Direct's intentions were not clear.

French Connection said its group operating loss for the six months to July 31 came in at 5.7 million pounds, down from 7.9 million in the prior year.

But revenue came in at 68.1 million pounds, down from 69.2 million pounds year ago. The company closed seven stores over the last 12 months, reducing its trading space by 10.2 percent. It has 349 branded locations in total.

Sales at stores open for more than a year in the UK and Europe were "broadly flat", it said on Tuesday.

However, revenue at its wholesale operation rose 7.2 percent to 29.6 million pounds, with the business returning to growth in UK, Europe and North America.

"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," Chairman and Chief Executive Stephen Marks said, admitting that there is a lot to do before company returns to profitability.

French Connection posted its fifth annual loss in a row in March.

Analysts at Numis Securities, which acts as broker to the company, expect the company to return to profit in 2019, citing the store rationalisation programme and tighter cost controls.

French Connection's current position is a far cry from the heady days of 2004 when the huge success of its FCUK brand boosted the company's shares to more than 500 pence.

The stock has plummeted since and was trading 2.3 percent lower at 44.12 percent by 1315 GMT.

(Reporting by Rahul B in Bengaluru, editing by Louise Heavens)

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Latest news on FRENCH CONNECTION GROUP
09/19 UK fashion chain French Connection racks up narrower loss
09/19 FRENCH CONNECTION : Interim Results for the six months ended 31 July 2017 (pdf)
09/14FRENCH CONNECTION GROUP : half-yearly earnings release
08/29 FRENCH CONNECTION : Change of Registered Office Address (pdf)
07/27 FRENCH CONNECTION : Holding(s) in Company (pdf)
06/01 FRENCH CONNECTION : Results of AGM 2017 (pdf)
03/14 Activist investor urges French Connection to break up
03/14 FRENCH CONNECTION : Annual Loss Widens But Sees "Noticeable" Improvement
03/09FRENCH CONNECTION GROUP : annual earnings release
02/20 FRENCH CONNECTION : Directorate Change (pdf)
More news
Financials ( GBP)
Sales 2018 152 M
EBIT 2018 -0,55 M
Net income 2018 -1,00 M
Finance 2018 11,3 M
Yield 2018 -
P/E ratio 2018 -
P/E ratio 2019 38,50
EV / Sales 2018 0,17x
EV / Sales 2019 0,16x
Capitalization 37,1 M
Chart FRENCH CONNECTION GROUP
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French Connection Group Technical Analysis Chart | FCCN | GB0033764746 | 4-Traders
Technical analysis trends FRENCH CONNECTION GROUP
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TrendsBearishNeutralBullish
Income Statement Evolution
Consensus
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Mean consensus OUTPERFORM
Number of Analysts 2
Average target price 0,50  GBP
Spread / Average Target 30%
EPS Revisions
Managers
NameTitle
Stephen A. Marks Chairman & Chief Executive Officer
Neil P. Williams Chief Operating Officer & Executive Director
Lee Williams Chief Financial Officer, Secretary & Director
Sarah Curran Independent Non-Executive Director
Robin A. K. W. Piggott Independent Non-Executive Director
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