British fashion retailer French Connection has reported flat like-for-like (LFL) sales in its third quarter, improving on its disappointing decline in the first half.
Improved sales are the result of more autumnal weather compared to a year earlier, the retailer said as sales of coats and knitwear have grown in the 16 weeks to November 20th 2012.
Gross margin levels remained stagnant over the period while UK and European wholesale revenues remained behind on last year due to a reduction in forward orders and a decline in in-season business, as explained earlier this year.
In September, the business announced the completion of its strategic review following considerable trading challenges over the previous six months and the retailer noted today that improved product ranges and operational changes are “progressing well”.
Through strict management of its inventory, the retailer has achieved a £5 million year-on-year reduction in its stock and a statement from the company applauded the improved performance.
Looking ahead in its interim management statement, French Connection said: “We remain confident that the initiatives being implemented and tight cost management will result in a steady and significant improvement in the revenue and gross margins in the business and will therefore have a positive impact on Group profitability across the next two financial years.”