French Connection has warned that its half-year retail sales will be “materially lower than expected”, due to challenging conditions reported at the year end that continued through the Easter period.
Wholesale performance is said to be in line with expectations, with forward orders up year on year. The menswear and womenswear brand said licensing continues to perform strongly.
Cash is currently £9.9m, compared with £12m in 2014, with no debt. Stock levels at the end of March were 7% lower than the same period in the previous year.
The company said it will close seven underperforming stores during the current year, as part of its previously announced store closure plan.