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15 May 2013 07:00
FRENCH CONNECTION GROUP PLC
Interim Management Statement
15 May 2013
French Connection Group PLC ("French Connection" or The Group") is today announcing its Interim Management Statement for the 15 week period to 11 May 2013.
Trading in the period in our UK/Europe retail business is broadly flat on a like-for-like basis on last year. In line with the market generally we saw a strong performance in the early weeks of the year which softened through March but has improved again recently. We are seeing progress from the initiatives that were instigated following the retail review last year and expect the impact of these to grow as the year progresses. Gross margin levels were slightly lower than last year.
As expected UK/Europe wholesale revenues have continued to be below last year as a result of lower forward orders and reduced in-season business. Looking ahead the trend has improved with the forward orders for the Winter 13 season in line with those achieved at this time last year.
In North America, retail revenue in the quarter was 5% above last year, partially driven by higher levels of promotional sales resulting in the gross margin being slightly lower. Revenue in the wholesale channel is below last year reflecting a more difficult start to the year for the US department stores.
Our joint ventures in Asia have performed well despite the retail market slow-down in China and Hong Kong, resulting in a small improvement in profit levels in the period.
The Group continues to operate with a strong balance sheet and no debt. Group cash is currently £15.7 million, compared to £10.4 million last year, reflecting the continued importance being placed on the tight control of working capital.
Other than as detailed above in this Interim statement, there have been no material events or transactions in the period from 1 February to 14 May 2013.
Enquiries:
Neil Williams French Connection +44(0)20 7036 7206
Tom Buchanan/Charlie Simon Maitland +44(0)20 7379 5151
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