French Connection’s like-for-like retail sales remained flat over the last quarter, with the retailer starting to see progress from measures aimed at reviving the business.
In the 15 weeks to May 11 the chain said trading across its UK/Europe retail arm was “broadly flat” compared to last year.
Sales were strong at the beginning of the year but then softened during March, although have improved again recently.
In the interim management statement French Connection said: “We are seeing progress from the initiatives that were instigated following the retail review last year and expect the impact of these to grow as the year progresses.”
Last year the retailer announced it was to review its retail operations after profits fell.
Wholesale revenues have however continued to be below last year due to lower forward ordered and a reduced in-season business. Though for autumn 13 forward orders have improved and are in line with last year.
Retail sales in North America grew 5% in the quarter helped by higher level of promotional sales, which led to gross margin being slightly lower.
French Connection’s joint ventures in Asia “performed well”, resulting in a small improvements in profits during the period.