Both revenues and profits rose for fashion retailer French Connection in the first half of its financial year, it was announced today.
Sales grew seven per cent year-on-year in the six months ending July 31st 2011, totaling £102.8 million.
Profit before tax was also up on last year, £700,000 compared to just £200,000 in 2010, and the company has reported that it has achieved a first half profit-after-tax for the first time since 2008.
Stephen Marks, Chairman and CEO of French Connection, said: “With the business on a stronger footing, we are in a good position to expand operations internationally. We see great opportunities to grow revenues from both franchising and licensing.
“The global appeal of our brand is evident in our continued growth overseas, and over the next three years we are looking forward to opening as many as 25 more stores in China under our Joint Venture as well as additional store openings by our franchisees in Russia, India and Turkey.”
Net cash closed for the period at £30.9 million, up from £30.2 million last year, allowing for extra investment in new stores.
Investments in multichannel have followed the sale of brand Nicole Farhi and its departure from the Japanese market as the retailer has gone about restructuring its organisation.
Interim dividend grew by 20 per cent on last year to finish at 0.6 pence per share but Marks is still cautious that the consumer environment remains challenging.
“We do not anticipate any easing in the retail environment during the second half of the year,” Marks added.
“However we have a proven ability to produce high quality and desirable ranges and with good increases in wholesale forward orders to support this, we remain confident in achieving our expectations for the full year.”