FCCN.L Regulatory News (FCCN)

15 May 2014

FRENCH CONNECTION GROUP PLC

Interim Management Statement

French Connection Group PLC ("the Group") today announces its Interim Management Statement for the period from 1 February to 14 May 2014. Unless otherwise stated, trends and figures highlighted below refer to the three months ended 30 April 2014 and the corresponding period last year.

UK/Europe retail has continued to perform well driven by improvements to our product and supported by retail operating initiatives.

In line with our strategy to enhance brand equity and reduce the level of discounting, UK/Europe retail did not go on mid-season sale this year in April and early May. Adjusting for the 2013 mid-season sale, on an underlying basis like-for-like sales increased by 9.1% in the 15 week period to 10 May 2014 (+5.6% on a reported basis). As previously reported, LFL's comparatives get tougher as we move into H2.

We closed two non-contributing stores in the UK during the period and plan to close further non-contributing stores during the year.

UK/Europe wholesale revenue is 8% above last year. The order book for Autumn/Winter 2014 is also ahead of this time last year.

In North America, weakness in the apparel market continues to impact our business, both in wholesale and retail. We expect the North America region to trade below expectations for the remainder of the year.

Overheads continue to be tightly controlled and on an underlying basis adjusting for store closures, are 2.5% lower year on year.

Net Group cash, which falls during a cyclical low period of the year, was £12.8m (2013: £13.7m). The Group carries no debt.

Other than as detailed above, there have been no material events or transactions in the period. Although very early in the financial year the Board consider the Group to be on track to deliver results in line with market expectations, which would demonstrate further year on year improvement in the financial performance of the Group. 

Stephen Marks, Chairman and Chief Executive said:

"I'm pleased to see continued momentum in our performance which demonstrates that we are on the right path. We are also encouraged by the early response to our Winter collection."

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