Fashion brand French Connection issued a profit warning as it admitted trade had “softened” in the UK and Europe during the lead-up to Christmas.
During the 24 weeks to January 12 like-for-like sales fell 2.9% against the same period last year, partly thanks to the firm’s decision to delay the beginning of its sale, and despite a strong start to the autumn-winter season.
Executives expect pre-tax losses for the year to the end of January to reach around £8 million before exceptional items. The City had been expecting losses to be between £5m and £6m.
Analyst Kate Calvert, of Seymour Pierce, said there were now “question marks over the company’s strategy” but praised its balance sheet and net cash position.
“It now looks likely that it will be at least two years before results break-even,” she said. “Although these results are disappointing, we believe the business does have value.”
