UK retailer French Connection's H1 sales short of pre-pandemic levels

13 Oct '21

2 min read

Pic: Shutterstock

French Connection’s first half (H1) sales remained well below pre-pandemic levels due to reduced retail portfolio and temporary COVID-19 store closures, offset by increased wholesale and e-commerce contribution. The British global retailer of fashion clothing and homeware reported 21.2 per cent dip in total revenue to £40.2 million over H1 FY19.

“I am pleased that the improvement in business we saw in the early part of the period has continued throughout the first half of the financial year. Wholesale in both the UK and the US has performed well, with a good outcome to the summer season,” Stephen Marks, chairman and chief executive at French Connection, said in a press release.

The group’s operating expenses registered a loss of £15.2 million for the six-month period ended on July 31, 2021, compared to the loss of £27.3 million in 2019. Moreover, underlying operating loss reduced to £0.9 million (H1 FY19: £3.6 million).

Earlier this month, MIP Holdings Ltd, a newly incorporated entity directly owned and controlled by Apinder Singh Ghura, Amarjit Singh Grewal and KJR Brothers Limited, entered into an agreement with French Connection to acquire it for £29 million.

“Over the last 5 years, French Connection has made significant progress in its plans to rationalise the size of its store portfolio and to return the Group to profitability. The board has concluded that the offer being made by MIP Holdings Ltd is fair and reasonable and recommends that all shareholders accept,” Marks said.

Fibre2Fashion News Desk (JL)

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