French Connection sees signs of turnaround

French Connection founder Stephen Marks today said the fashion brand appeared to be “back on track” following a major restructuring effort.

The group reported a slender half-year profit from the businesses it intends to retain and said it was confident of progress over the year as a whole.

As part of moves to slim down the group, French Connection is shutting loss-making stores in the US alongside the closure of its Japanese business and some European retail outlets. It has also sold its loss-making Nicole Farhi brand.

The retained businesses increased turnover by 4% to £96.2m (€115m) in the six months to July, while overheads were reduced further to generate pre-tax profits of £200,000 (€239,000), compared with losses of £5.4m (€6.4m) a year earlier.

Mr Marks, who is company chairman, told shareholders: “I am pleased with the substantial improvement in operating results in the first half of the year and I am confident that French Connection is now back on track.”

With the restructuring now largely complete, he said the company was at the beginning of a new period of growth.

The shake-up has left French Connection with its UK and European retail and wholesale operations, the Great Plains wholesale-only ladieswear range and Toast, its mail order fashion and homewares brand.

It is also planning to keep 20 stores in North America and today announced a licence agreement for the use of the “UK Style by French Connection” name in the US by a Hong Kong-based consumer goods export firm. The products will be sold exclusively through Sears department stores.

More in this Section

Manager at Cork bank begins action aimed at preventing termination of her employmentManager at Cork bank begins action aimed at preventing termination of her employment

Cork JCD  building to become Ireland's greenest building Cork JCD building to become Ireland's greenest building

British Airways flights delayed by ‘technical issue’British Airways flights delayed by ‘technical issue’

Google bans ads targeting political affiliationGoogle bans ads targeting political affiliation


Lifestyle

This truck serves as an excellent metaphor for what needs to happen in our education system. A colossal truck needs to barge in front of it.Secret Diary of an Irish Teacher: Time to ditch private schools

Sorting out Cork people for ages...Ask Audrey: Is it still ok to just lob the gob after 10 pints?

Nip those winter ailments in the bud with the help of garden bounty. Fiann Ó Nualláin shows you how.Have a berry merry Christmas with the help of garden bounty

Dig a planting hole around three times the size of its pot and around the same depth, loosening the soil around the hole.Your quick guide to planting trees

More From The Irish Examiner