FCCN.L Regulatory News (FCCN)

FRENCH CONNECTION GROUP PLC 

Interim Management Statement

26 November 2014

Interim Management Statement

French Connection Group PLC ("the Group") today announces its Interim Management Statement for the period from 1 August to 25 November 2014. Unless otherwise stated, trends and figures highlighted below refer to the three months ended 31 October 2014 and the corresponding period last year.

The Group delivered an improved performance in the period with a further strong reduction in losses before tax particularly through an improvement in the wholesale division and global licence income.

For the 17 week period to 22 November, UK/Europe retail has been trading against stronger prior year comparatives and un-seasonally warm weather. Given this backdrop UK/Europe LFL's were -5.7%. Through a combination of improved underlying margin and a continued focus on full price sales UK/Europe gross margin improved in the period (+240 bps). With underlying operating expense savings and the reduction of costs due to the closure of non-contributing stores the losses in the retail division were marginally reduced.

In the UK we closed three non-contributing stores and opened two concessions. In Europe we opened a store in Berlin, took over a franchise store in Amsterdam and opened two new Spanish concessions in El Corte Ingles. A new franchise partner also opened a store in Grenoble.

Group wholesale revenue increased in the period by 9% over the corresponding period last year. The order book for spring 2015 is strong.

Group cash, during a cyclical low period of the year, was £8.7m (2013: £10.0m).

Stephen Marks, Chairman and Chief Executive said:

"As widely reported trading in UK retail has been tough and while we still have the all-important Christmas period to come, I am pleased to report that the overall performance of the Group continued to be positive, particularly in UK wholesale and global licensing with continued tight cost control and we expect the results for the full year to be in line with market expectations."

Enquiries:

Adam Castleton/Neil Williams French Connection +44(0)20 7036 7063

Tom Buchanan Tulchan +44(0)20 7353 4200