// French Connection revenues plunge 40.4& to £71.5m after Covid lockdowns caused it to shut stores
// Underlying loss widened to £11.7m for the year to January 31, compared with a £2.9m loss in the previous year
// Retail sales were cut by more than half to £22.5m
French Connection has revealed that sales plummeted over the past year as it was battered by enforced store closures during the Covid-19 pandemic.
The fashion retailer also revealed widening full-year losses as a result of shrinking sales.
It told investors this morning that group revenues plunged by 40.4 per cent to £71.5 million after Covid lockdowns caused it to shut stores for large parts of its fiscal year.
READ MORE:
- French Connection hires Carpetright veteran as non-executive director
- French Connection launches formal sale process
- Mike Ashley’s Frasers Group offloads French Connection stake
The retailer added that the pandemic had also “reduced demand” from its wholesale customers.
Retail sales were cut by more than half to £22.5 million and were only partly offset by increased online demand.
As a result of lower sales, French Connection sank to an underlying loss of £11.7 million for the year to January 31, compared with a £2.9 million loss on the previous year.
The high street chain said it has secured savings across all areas of the business, including through renegotiating rent with landlords, business rates relief, and the use of the furlough scheme in order to offset the impact of the pandemic.
Nevertheless, chairman and chief executive Stephen Marks said he was optimistic about the business’ recovery.
“Our key focus for the year has been to navigate our way through the difficult challenges we have faced as a result of the Covid-19 pandemic,” he said.
“With stores having predominantly reopened in the UK, we are seeing a much better sales performance than we experienced at the end of the first national lockdown, although it will take time to see how quickly things develop over the coming months, in our own stores but also for our wholesale customers.
“Overall though, I feel that we are definitely moving in the right direction once again.”
with PA Wires
Click here to sign up to Retail Gazette‘s free daily email newsletter
