French Connection’s half-year results showed it “building on good progress” and “on track to meet expectations”, but it's still loss-making. It also said its strategic review would be completed before 2020.
It was a mixed set of results for French connection on Tuesday as the struggling fashion retailer reported an underlying "return to profitability" but still a lot of work to do and key metrics remaining negative.
In a short statement on Monday, French Connection confirmed what had been rumoured for some time with the company saying that it’s looking at its strategy options and one of those could include a sale.
French Connection said it's making progress and will be profitable again by year-end. But in H1, sales fell and it remained loss-making, despite wholesale in the UK, Europe and US firing on all cylinders.
French Connection is still lossmaking and margins are down but there's news to be cheerful about too as its new concept store outperforms, wholesale turnover rises, e-tail makes up a third of sales and m-commerce surges.
French Connection had some good news on Tuesday with an improving performance and Veryexclusive's Sarah Curran joining the board. But its turnaround is still far from certain as losses continue and sales are still down.
Sports Direct now owns 27% of beleaguered fashion retailer French Connection with the stake making it the second largest shareholder in the firm and just 3% below the threshold at which it must launch a takeover bid.
Investors in struggling French Connection are voicing fresh criticism of its boss Stephen Marks. Their complaints come after the board confirmed him in his dual CEO/chairman’s role on a show of hands at last week’s AGM.