87 163
Fashion Jobs
LULULEMON
Community Specialist | Summit, Springfield Ave
Permanent · SUMMIT
LULULEMON
Expeditor | Cherry Creek
Permanent · DENVER
LULULEMON
Community Specialist | Friendly Center
Permanent · GREENSBORO
NORDSTROM
Customer Service Representative - Hillsdale Shopping Center
Permanent · SAN MATEO
NORDSTROM
Retail Stock - Mercer Mall Rack
Permanent · LAWRENCE TOWNSHIP
NORDSTROM
Manager- Service Experience- Baton Rouge Mall Rack
Permanent · BATON ROUGE
NORDSTROM
Retail Stock - Sugar House Rack
Permanent · SALT LAKE CITY
NORDSTROM
Asset Protection - Agent - Aventura
Permanent · AVENTURA
NORDSTROM
Retail Stock - Northwoods Rack
Permanent · SAN ANTONIO
NEIMAN MARCUS
Business Manager Tom Ford, Beauty (PT, 35 Hours) - FT. Worth
Permanent · FORT WORTH
NEIMAN MARCUS
Sales Manager, Designer Rtw
Permanent · CORAL GABLES
NEIMAN MARCUS
Sales Professional, Beauty
Permanent · NEW YORK
TIFFANY & CO
Manager, HR Business Partner
Permanent · NEW YORK
URBN
Security Officer (Monday-Thursday; Overnight Shift)
Permanent · LEVITTOWN
AMERICAN EAGLE OUTFITTERS
ae - Market Visual Leader - us
Permanent · MCLEAN
CROCS
Supervisor, Distribution Center - 1st Shift
Permanent · LAS VEGAS
NEWELL
Associate Brand Manager, Coleman
Permanent · ATLANTA
NEWELL
Senior Director, Analytics
Permanent · HOBOKEN
NEWELL
sr. Manager, Customer Planning
Permanent · ATLANTA
NEWELL
Finance Manager, bp&a
Permanent · ATLANTA
BALLARD DESIGNS
Retail Receiving Manager
Permanent · ROSWELL
FRONTGATE
Merchandise Operations Specialist
Permanent · WEST CHESTER TOWNSHIP
By
Reuters
Published
Sep 12, 2008
Reading time
2 minutes
Download
Download the article
Print
Text size

French Connection posts bigger H1 loss

By
Reuters
Published
Sep 12, 2008

LONDON (Reuters) - Fashion retailer and wholesaler French Connection on Friday posted a larger first-half loss citing a "significant downturn" in its core markets, sending its shares down more than 3 percent.

The group, in common with a raft of UK retailers such as Next and DSG International , was cautious on the macroeconomic outlook, but said it still expected to make a full-year profit and was hopeful of maintaining its annual dividend payout despite it being uncovered by expected earnings.

Chief Operating Officer Neil Williams told Reuters he was comfortable with house broker Numis' forecast for pretax profit of 0.5 million pounds for the year to end-January 2009.

For the six months to July 31, the group, which trades in the United States and Asia as well as the UK, made a pretax loss of 3.5 million pounds versus a loss of 2.5 million pounds in the same period last year. Turnover rose 3 percent to 112.4 million.

Offsetting the loss was a 1.9 million pound gain on the disposal of leased property.

Stephen Marks, the group's founder, chairman and 42 percent shareholder, said in a statement the results were disappointing.

"It would appear that the economic environment is unlikely to improve in the short-term and that therefore any gains we make will have to be achieved through significant out-performance by our ranges," he said, adding that the business is looking to cut costs where possible.

Many UK retailers are struggling as consumers curb spending due to higher fuel, food and mortgage costs. Fashion retailers have also had to cope with two consecutive summers of dismal weather.

On Wednesday, Next, the No.2 clothing retailer by sales value, reported a 12 percent slump in first-half profit.

Marks took some encouragement from the performance of womenswear, which achieved retail like-for-like sales growth in both the UK and North America of 8 percent. In menswear he expected a new design team to improve second-half sales figures.

He said recent retail trading in the UK and Europe had shown growth over last year, but North America had been softer.

The group maintained its interim dividend at 1.7 pence, having ended the first half with net cash of 34.8 million pounds.

"With substantial net funds French Connection has the luxury of time to pursue a sales-led turnaround," said analysts at Numis in a research note.

With the group having made a profit of nearly 40 million pounds just four years ago, Williams was confident management could effect a turnaround.

"Our key target is to get to a 10 percent operating margin ... and we think that is definitely achievable," he said.

He said Marks had "made no indication" that he will move to take the group private.

At 11:36 a.m. shares in French Connection were down 2.0 pence at 63.5 pence, valuing the business at 61.5 million pounds.

The stock has lost 62 percent of its value over the last 12 months, having underperformed the FTSE All Share General Retailers Index .FTASX5370 by 34 percent.

(Reporting by James Davey; Editing by Jon Loades-Carter)

© Thomson Reuters 2024 All rights reserved.