FRENCH CONNECTION HITS A RISING TREND
SHARES in struggling French Connection soared 27pc on the back of strong sales of knitwear, denim and sparkly party dresses, and a windfall for ditching a high-profile shop.
The under-pressure fashion chain said it had sold more full-priced clothes, which had helped improve its profit margin, and UK and Europe retail sales in the 16 weeks to November 21 rose 0.2pc, compared with a 6.1pc fall in the same period a year ago.
The retailer also received £2.4m compensation from its landlord in London’s Regent Street after agreeing to close the loss-making store as the building is being redeveloped.
Analysts at stockbroker Numis said: ‘We are encouraged by the improved trading trend, accelerated closure of loss-making stores, and the ongoing evidence that French Connection can profitably leverage its strong global brand.’
Stephen Marks, French Connection chairman and chief executive, said: ‘The performance has improved considerably compared to the first half of the year.
‘While we still have the all-important Christmas period to come, we expect the results for the full year to be in line with market expectations.’
Last night, shares closed up 8.12p at 38.5p.