French Connection sees resilient sector

"The UK fashion retail market appears to have been resilient in recent months but there is no certainty this will continue through the rest of the year and we are planning accordingly," the firm said yesterday.

French Connection said sales at UK and Europe stores open over a year fell 1.9 per cent in the 14 weeks to May 15 but gross margins improved as there was less discounting.

"Menswear achieved encouraging growth in the period, showing the early signs of recovery in that division. Ladieswear revenue was a little lower on a strong comparable performance," the firm said. In North America like-for-like sales in stores were down 2.5 per cent, with gross margins "well ahead" of the previous year.

The firm's wholesale business saw deliveries increase during the period, while forward orders for autumn/ winter are also higher.

French Connection has suffered in recent years as it struggled to reposition itself after the popularity of its FCUK brand waned, even before the recession started.

In March the firm completed a restructuring aimed at returning it to profitability by selling its loss-making Nicole Farhi brand and closing most of its US stores. It had previously exited businesses in Japan and Northern Europe.