LONDON (Alliance News) - High Street fashion retailer French Connection Group PLC on said it has seen improved trading in the second half, with sales higher and its gross margin healthier.
The company said sales of its Winter 15 collection continued to be strong in the 16 weeks to November 21, following a promising start to the season. Like-for-like UK and Europe retail sales were up 0.2%, compared to a 6.1% decline a year earlier, with full-price like-for-like sales growth flat at 6.0%.
The gross margin for the half also improved, up 1.5 percentage points as the full-price contribution to the sales mix improved, along with better input margins.
"I am pleased to report that the performance of the group has improved considerably compared to the first half of the year, particularly in the UK/Europe retail stores and while we still have the all-important Christmas period to come, we expect the results for the full year to be in line with market expectations," said Chairman and Chief Executive Stephen Marks.
The group is also seeking to continue rationalising its store portfolio and expects to close another seven non-contributing stores in the second half of its financial year to the end of January 2016. It also will vacate its loss-making store on Regent Street in central London due to the redevelopment of the site and will receive a compensation payment of GBP2.4 million for doing so.
Shares in French Connection were up 12% early Monday to 34.00 pence, one of the best performers in the London market.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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