Retailer Overcomes Challenges, Awaits Potential Buyers
- French Connection returns to profitability after seven years
- Sales drop by 6.8% due to decline in-store and online
- Wholesale revenue up 10.3%, retail revenue down 10.6%
- Total group revenue marginally up 0.2% to £135.3m
- CEO Stephen Marks: ‘significant achievement given recent years’
- Ongoing discussions with potential buyers
Embattled retailer French Connection has announced a return to profit for the first time in seven years, despite experiencing a sales drop during difficult trading conditions. Like-for-like sales during the 12 month period to 31 January fell by 6.8% due to decline in both in-store and online. However, the company had returned to profitability posting an underlying profit of £0.1m, compared with a loss of £2.1m the previous year. Its wholesale revenue rose 10.3% to £76.9m, but this was offset by its retail revenue dropping 10.6% to £58.4m. As a result, total group revenue was marginally up 0.2% to £135.3m. Commenting on the results, Stephen Marks, chairman and CEO, said: “I am pleased to report that we have achieved our target of returning the group to underlying profitability this financial year. This is only part of our overall journey, however it represents a significant achievement given the results over recent years. “This has been achieved despite the ongoing difficult retail trading environment in the UK and is the result of the changes we have made in all areas of the business to adapt to the ever evolving markets in which we operate. While we still have a way to go to return the business to an appropriate level of profitability, I believe that we have made and continue to make significant progress. ” The company added that preliminary discussions were still ongoing with several potential buyers.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about French Connection’s financial performance, including sales figures, profitability, and the CEO’s comments on the company’s progress and ongoing discussions with potential buyers.
Noise Level: 4
Noise Justification: The article provides relevant information about French Connection’s financial performance and the company’s CEO’s comments on their progress towards profitability. It also mentions a potential sale of the business. However, it could benefit from more in-depth analysis or context on the retail environment and market trends.
Financial Relevance: Yes
Financial Markets Impacted: French Connection’s stock price and potential buyers of the business
Financial Rating Justification: The article discusses French Connection’s return to profitability, which has an impact on its stock price and may affect the interest of potential buyers in the company.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.
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