French Connection’s hopes of getting back in the black dashed by profit warningComments Off on French Connection’s hopes of getting back in the black dashed by profit warning
The retailer was tight-lipped about the reasons behind the collapse, only saying that its retail division’s sales will be “materially lower than expected”.
Analysts instantly switched their predictions of a £500,000 profit next year to expectations of a £3.5 million loss. The company last month revealed a full-year pre-tax loss of £800,000.
Retail analyst Freddie George at Cantor Fitzgerald called the warning “very disappointing” and suggested that the problems were down to weaker ranges in its stores.
He added: “Last year, the ranges looked a lot brighter — they had a lot of strong accessories and shoes — but that’s not there now.
“It has not been a great first quarter in the retail sector. Generally, apparel fashion has been weak in the first quarter and my hunch is that people are saying ‘we’ll buy a car, or do a bit on the house… instead of (spending on) fashion.’”
He said some of the problems could be down to founder and chief executive Stephen Marks: “He signs everything off but he’s just one person. You can get it right sometimes but you can also get it wrong.”