Adds particulars from assertion, background, shares Oct 13
Adds particulars from assertion, background, shares
Oct 13 (Reuters) – British clothes retailer French Connection Group Plc FCCN.L mentioned on Tuesday gross sales had halved on the again of the coronavirus disaster within the first half of the yr, greater than tripling its underlying loss in comparison with the identical interval a yr earlier.
Shares within the firm slumped almost 16% to 7.55 pence by 0707 GMT, deepening a 76% fall to this point this yr.
Britain’s retail sector, already combating rising prices and stiff on-line competitors, has seen a turbulent yr as a result of coronavirus disaster, with many corporations slashing jobs and completely closing shops.
“This has undoubtedly been essentially the most tough buying and selling interval that the Group has ever confronted,” Chairman and Chief Government Stephen Marks mentioned in a press release.
French Connection, which has not been worthwhile in almost a decade, reported an underlying lack of 12.2 million kilos ($15.90 million) for the six months ended July 31, in contrast with a lack of 3.6 million kilos a yr earlier.
The corporate, as soon as recognized for its provocative FCUK model of clothes and accessories, mentioned virus restrictions hit income by 22.2 million kilos and revenue by 9 million kilos throughout the interval.
Simply as shops began reopening and restrictions on actions eased, the UK authorities began tightening curbs once more on some areas to stymie an acceleration in infections.
French Connection, which owns manufacturers together with Nice Plains and YMC, mentioned the restoration in gross sales because the shops reopened has reversed barely as a result of new restrictions.
The corporate, which pulled plans to promote itself earlier this yr, had warned it may run out of money earlier this yr earlier than securing a 15 million pound funding for 2 years to cowl its money wants.
($1 = 0.7671 kilos)
(Reporting by Jasmine I S in Bengaluru; Modifying by Rashmi Aich)
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