Troubled French Connection issues third profits warning
Friday 18 May 2012
The fashion chain French Connection issued its third profits warning in seven months yesterday as it said sales in its UK shops slumped by 12 per cent in the first three months of the year.
Shares in the group – founded by the chief executive, Stephen Marks, in 1972 – collapsed, falling 9.5p or 24 per cent to a two and a half year low of 30p.
Mr Marks said: "The UK retail market remains particularly challenging and the combination of prevailing consumer caution and ongoing economic difficulties suggests that this will not improve in the second half of the year. We therefore remain cautious about the outlook for the rest of the financial year."
Analysts slashed their profit forecasts for the year to next January from £3m to £4m to a loss of £5m. Last year the business made a £5m profit despite the UK stores losing £8.2m.
French Connection said the review of its UK and European retail operations, launched in March, had been accelerated with the appointment of external consultants. It is expected to close up to a fifth of its 72 stores in Britain as a result of the review.
- 1 Drugs Live cannabis trial: Hash is less harmful than any other drug, expert claims
- 2 What happens to your body when you give up sugar?
- 3 Turkish Airlines flight TK 726 crash-lands on Nepal runway amid dense fog
- 4 Have sex with your iPad thanks to the new sex toy no-one asked for
- 5 The 'sex selfie stick' lets you FaceTime the inside of a vagina
Turkish Airlines flight TK 726 crash-lands on Nepal runway amid dense fog
George Clooney and Amal fail to get special treatment at New York restaurant
Cindy Crawford 'un-PhotoShopped' viral Marie Claire image was doctored, claims photographer
'A girl is more responsible for rape than a boy': The statement that shocked the world... except India
The 'sex selfie stick' lets you FaceTime the inside of a vagina
Durham Free School: 'Creationism taught at' free school facing closure
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
Ukip would cut billions from Scottish budget to fund English tax cuts
End of the licence fee: BBC to back radical overhaul of how it is funded
Ukraine crisis: Top Chinese diplomat backs Putin and says West should 'abandon zero-sum mentality'
Boris Nemtsov shot dead: Outspoken Putin critic who had expressed fears for his life is killed near the Kremlin
iJobs Money & Business
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
Voluntary post, reasonable expenses reimbursed: Reach Volunteering: Would you ...
£36,000 - £40,000: Christine McCleave: Are you looking for a new opportunity a...
£15000 - £18000 per annum: Recruitment Genius: This is a great opportunity for...