French Connection boss Stephen Marks sees return to profit next yearComments Off on French Connection boss Stephen Marks sees return to profit next year
Stephen Marks, chief executive and chairman, said: “This is the third year we’ve improved things.
“We are moving in the right direction and I hope next year we will make a profit again.”
Underlying, pre-tax losses for the year to the end of January were £800,000, compared with a £4.4 million loss a year earlier.
He said the High Street has been particularly difficult but its wholesale division and licensing business had helped ease the falling sales, with a tie up with DFS sofas going particularly well.
Retail sales dropped 12.1% to £103.3 million, with an underlying loss of £11.3 million. But the whole business grew 4.6% to £75.2 million. Revenues fell 5.8% to £178.5 million.
Marks said six more stores are due to close but the chain had also opened new outlets which he said were performing well.
He added: “We’ve opened a store in Berlin very successfully and maybe if we close stores it doesn’t mean to say we won’t be opening other stores in better locations. We’ve dealt with things sensibly.”
The City was less impressed and shares dropped 6.9p to 54.1p.