FCCN.L Regulatory News (FCCN)

12 Nov 2007 07:45

French Connection Group PLC12 November 2007 FRENCH CONNECTION GROUP PLC Interim Management Statement 12 November 2007 In the first fourteen weeks of the second half of the financial year, sales inthe UK/Europe retail division have grown by 1% in total and fallen by 3% on alike-for-like basis. In a volatile period, sales of French Connection ladies'wear have continued to grow in like-for-like terms and Toast is now showingimprovement. However, in-line with the general fashion retail market, overallsales in both August and October were lower than expected and our experiencesare causing us to be more cautious about the general consumer environment forthe last quarter and into next year. As previously highlighted, revenue in our wholesale business in UK/Europe isbelow the level seen last year reflecting lower levels of forward-orders and thetransfer of some business to our retail division. However, forward orders forSpring/Summer 2008 are ahead of last year. Our retail business in North America has seen continued improvement. Sales indollar terms have increased by 10% in total and more than this on alike-for-like basis in the fourteen week period. In sterling terms, however,this will be negated by the 10% depreciation experienced by the US dollaryear-on-year. In our North America wholesale business, revenue in the year todate is now in-line with last year in dollar terms. Forward orders for Spring/Summer 2008 are running ahead of last year's level. Our balance sheet remains strong with £26.4 million of net cash at the end ofOctober 2007 (2006: £27.7 million). While we expect to report a profit for the year, our ability to achieve the samelevel of profit as last year depends on an improvement in the general retailenvironment in the UK over the next three months. Enquiries: Neil Williams/Roy Naismith French Connection +44(0)20 7036 7206Tom Buchanan/Deborah Spencer Brunswick +44(0)20 7404 5959 This information is provided by RNS The company news service from the London Stock Exchange