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French Connection interim losses widen due to Covid-19
13th Oct 2020 07:54
(Sharecast News) - French Connection reported a widening of its interim losses on Monday as sales slid due to the coronavirus pandemic.
In the six months to the end of July, pre-tax losses widened to £13.2m from £4.6m in the same period a year ago, with revenue down 53.1% to £23.9. The fashion retailer said the decline was "predominantly owing to the impact of the Covid-19 pandemic".
Wholesale revenues fell 49.3% to £13.8m, reflecting the closure of customers' stores in all regions although some deliveries continued to online operators. Meanwhile, retail revenues slumped 57.6% to £10.1m due to the lockdown period and the permanent closure of nine retail locations in the first half.
Still, the company said current trading was in line with its expectations.
Chairman and chief executive Stephen Marks said it had been "the most difficult trading period that the group has ever faced".
"Despite the unprecedented difficulties we continue to face alongside the rest of the High Street, having been able to secure the necessary financing we feel that we are well positioned to navigate an extended period of uncertain consumer demand but also ready to capitalise on any opportunities that may arise especially given the good performance of wholesale, while maintaining a very tight control of costs," he said.
In the six months to the end of July, pre-tax losses widened to £13.2m from £4.6m in the same period a year ago, with revenue down 53.1% to £23.9. The fashion retailer said the decline was "predominantly owing to the impact of the Covid-19 pandemic".
Wholesale revenues fell 49.3% to £13.8m, reflecting the closure of customers' stores in all regions although some deliveries continued to online operators. Meanwhile, retail revenues slumped 57.6% to £10.1m due to the lockdown period and the permanent closure of nine retail locations in the first half.
Still, the company said current trading was in line with its expectations.
Chairman and chief executive Stephen Marks said it had been "the most difficult trading period that the group has ever faced".
"Despite the unprecedented difficulties we continue to face alongside the rest of the High Street, having been able to secure the necessary financing we feel that we are well positioned to navigate an extended period of uncertain consumer demand but also ready to capitalise on any opportunities that may arise especially given the good performance of wholesale, while maintaining a very tight control of costs," he said.