By
Reuters
Published
Nov 25, 2009
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French Connection third quarter boosted by currency gain

By
Reuters
Published
Nov 25, 2009

LONDON, Nov 25 (Reuters) - British fashion group French Connection (FCCN.L) said third quarter turnover increased 8 percent year-on-year, with most of the rise due to favourable exchange rates rather than any improvement in underlying trade.


Photo: www.frenchconnection.com

The firm, which has struggled in recent years as the appeal of its FCUK brand has waned, said on Wednesday 25 November its ladieswear business continued to show growth in UK/Europe retail but its menswear business continued to struggle, while markets in North America and Japan remained soft.

Sales at stores open more than a year in the UK/Europe retail division grew 0.3 percent in the three months to Oct. 30. Revenue in the UK/Europe wholesale business fell 11 percent, while forward orders for Spring/Summer 2010 are lower than levels achieved last year.

In North America third quarter retail like-for-like sales fell 4.7 percent, while wholesale revenue was flat.

French Connection said it had net cash at the end of October of 15.4 million pounds ($25.47 million).

Shares in French Connection have lost 40 percent of their value over the last six months, underperforming the general retailers index .FTASX5370 by 54 percent. The stock closed Tuesday 24 November at 40 pence, valuing the business at 38.4 million pounds. Shares were changing hands for over 200 pence two years ago.

(Reporting by James Davey; Editing by Ben Deighton)

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