5th Feb 2014 15:50
LONDON (Alliance News) - Shares in French Connection Group PLC surged Wednesday afternoon, after the fashion clothing retailer said it expects a marked improvement on its losses for the financial year ended January 31, supported by a better-than-expected improvement in sales and margin in the UK and in Europe over the Christmas period.
In a trading update ahead of the release of its full-year results on March 12, French Connection said it now expects to report a loss before tax and exceptional costs of GBP4.7 million for the full-year, a significant improvement when compared with the GBP7.2 million loss it reported a year earlier.
French Connection said retail sales and margin in the UK and Europe in the December to January period, were both better-than-expected. It also said the UK wholesale forward order book is strong and shipments have been ahead of last year.
Trading across the rest of the group's activities was broadly in line with previous expectations, the company said.
The retailer said is closed the year debt-free, with over GBP27 million in cash, supported by a tight control on working capital.
Shares in French Connection were up 16.3% at 41.86 pence per share Wednesday afternoon.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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