LONDON (Alliance News) - French Connection Group PLC Thursday said its North American operations continue to be hit by the weak apparel market but its UK/Europe operations have continued to perform well with wholesale revenues up for the region.
The fashion retailer said that in North America, weaker market conditions in the apparel business have hit its operations, both in retail and wholesale. As a result, it said that it expects the North America region to trade below expectations for the remainder of the year.
However, French Connection said that its UK/Europe retail operations in the three month period ended April 30 have continued to perform well driven by improvements to its products and supported by retail operating initiatives.
The company said that, in line with its ongoing strategy to enhance brand equity and reduce discounting, there was no UK/Europe mid-season sale this year in April and early May. It said that after adjusting for the mid season sale, on an underlying basis like-for-like sales increased by 9.1% in the 15 week period to May 10.
French Connection added that it closed two stores in the UK during the period and plans to close more stores during 2014.
The company said that its UK/Europe wholesale revenues are 8% above the previous year and its order book for Autumn and Winter is also ahead of this time last year.
"I'm pleased to see continued momentum in our performance which demonstrates that we are on the right path. We are also encouraged by the early response to our Winter collection," Chief Executive Stephen Marks said in a statement.
French Connection shares were down 10.0% to 79.00 pence on Thursday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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