Sales see French Connection look to a winter of content

Shares jumped by more than 10 per cent as the company also said results for the first half of its financial year will be in line with expectations.

As well as growth in like-for-like sales in its UK stores, including its five in Yorkshire, French Connection said orders from wholesale customers were ahead of last year, meaning it approached “the important winter season with confidence”.

Andrew Wade, an analyst at Numis Securities, said the first half update was reassuring given the difficult trading climate.

He said the retail performance reflected the strength of current ranges, adding that he continued to expect full-year profits of £8.8m.

French Connection has revived its fortunes with a restructuring that saw it sell its loss-making Nicole Farhi brand and close its Japanese business and some stores in North America and Europe.

The shake-up left it with its UK and European retail and wholesale operations, the Great Plains wholesale-only ladieswear range and Toast, its mail-order fashion and homewares brand.

In a statement yesterday, the firm said: “The board are pleased to announce that profit for the first half will be in line with management expectations.

“The group achieved growth in like-for-like sales in our UK stores despite the difficult market conditions.

“Net cash at the end of the period was circa £30.5m which was ahead of our expecta- tions.

“Our winter 2011 wholesale orders are ahead of last year, so we approach the important winter season with confidence.”

French Connection was founded in 1972 by retail entrepreneur Stephen Marks, who set out to create well-designed fashionable clothing that appealed to a broad market.

Today, the business operates in around 30 countries, with more than 1,000 stockists and with total worldwide retail sales of branded product of more than £400m.