French Connection’s profits slump

High Street fashion retailer, French Connection, is expecting a difficult year after 2007 pre-tax profits fell by 23% to £3.1million. Commenting on the figures, the group said latest annual results ‘did not progress as we would have liked’.

Turnover at the fashion chain fell 2% to £236.1 million compared with £241.3 million 12 months ago.

Chairman, Stephen Marks, blamed a decline in menswear sales and a general spending slowdown. This performance is not good enough. We are reviewing all elements of our operation, he added. He warned it would take time before a revamp of menswear and marketing produced better sales.

However, for the first time in 2 years, we are experiencing some improvement in the wholesale orders in both UK/Europe and North America, added Mr Marks.

French Connection’s result follow the news that UK retailers saw consumers cut their spending ‘in earnest’ last month, according to the British Retail Consortium.

The company was established in 1969 and sells clothing and accessories around the world. Ten years ago, the company started branding their clothes ‘fcuk’ which caused controversy.

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