FCCN.L Share News (FCCN)

LONDON, Sept 16 (Reuters) - British fashion retailer FrenchConnection said on Monday it had narrowed first-halflosses and seen an encouraging customer response to recentlylaunched winter collections.

The firm, which is attempting a turnaround after years ofunderperformance, made a loss before tax of 6.1 million pounds($9.7 million) in the six months to July 31, slightly betterthan the loss of 6.3 million pounds made in the same period lastyear.

Revenue was 89.9 million pounds, down 6.4 percent,reflecting a softening in French Connection's wholesale businessand a reduction in the UK/Europe retail business. Gross marginwas slightly down.

"We have recently launched the winter collections and thereaction has been encouraging although it is still early in theseason," said founder, chairman and chief executive StephenMarks.

"With the recent improvement in the wholesale order books,the changes we have made are starting to resonate with ourcustomers," he said.

French Connection also ended the half with an improved cashposition of 22.3 million pounds, no debt and reduced stocklevels.

Shares in the firm, up 35 percent over the last year, closedFriday at 33 pence, valuing the business at 32 million pounds.