Hat tip to dalooks 1 for his knowledge and constructive discussion on this board. He is correct in his assumption that fashion retailers are cyclical by there very nature. They ebb and flow within the tide of trends of fashion and the successful ones are those who identify these trends. Over the past year it appears that the FCCN management have worked extremely hard judging by the quality and range of products they are now offering, to make FCCN fashionable again. From the last trading update this appears to be working. Of course it takes time but increasing sales and margins will translate into profits. Only then looking in the rear view mirror will it become apparent, that with a market cap of around £50m on sales of around £190m that this looks to be a bargain on today's valuation.
No problem, created by a clever chap called Trevor Beattie, who came up with the wonderbra 'hello boys' billboard. FCUK was genius at the time and was symbolic of that time in the 90's, you know loaded, FHM type mens culture was what it was all about. Fashion is cyclical as we all know and FCUK will come around again but it will need to be in a slightly different form. The FCUK t-shirts they have now for example say 'hey fcukin presto'. Not particularly clever and v naff. Back in the 90's French Connection was there alongside Burberry and Ted Baker in terms of size and brand perception. Ted is now worth £0.75B and Burberry £6.3B. So massive potential here.
dalooks1, Can you give me a brief history lesson on the FCUK t-shirts please? I know you have been following FCCN for a long time now. I seem to recall that everyone was wearing them about 15 years ago, that was when sales went through the roof and all of a sudden, they went out of fashion? It seems to me that they could get back in fashion again? I am an old fart so you will not see wearing them! I still think this is a great medium term investment and we shall see good return in FY 2015. Around this price is a great entry point. 90p was way too high, am sure it will hit that price before the 2015 AGM.
Fair comment and there is a touch of 'dog with a bone' when I look at my comments back but they are facts and I still can't get my head around those FCUK t-shirts. But yes agree the shares are a bargain.
I think you are placing to much emphasis with respect Dalooks1 on short term changes with the website. All retailers discount heavily at the end of a seasonal period. Also this company appears to be making good progress with regards to online sales. Furthermore, if you talk to people in the trade, their summer collection has been a real success and FCCN are back in fashion, and with the CBI survey suggesting retail sales bounced back sharply in July I would say you can now go back to a positive stance on company as the market cap is now back to nearly £50m the shares look to be in bargain territory.
Ok, go onto the frenchconnection.com website. Go into Mens New arrivals, what do you see 3 FCUK t-shirts an bad ones at that, this is the start of the new season. V bizarre,
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