Stephen Marks, chief executive of French Connection, has launched a review of the fashion chain’s UK retail operations after the “most difficult” winter season in 40 years and its posting annual profits which were down by nearly a third.
The founder of the clothes retailer struck an upbeat tone on trading in London and the impact of this year’s Diamond Jubilee and Olympics on the capital but said: “It is the rest of the country that is very difficult.”
Marks said its retail review would “look at every single process in absolute detail to see if we can improve”, such as better buying and less discounting.
But he effectively ruled out closing a large number of its 75 UK stores, adding that it only has four stores where the leases come up for renewal over the next three years. Pre-tax profits at French Connection, which has operations in countries from China to the US, fell by 32% to £5 million over the year to January 31.
Marks, who founded the retailer in 1972, said: “In the most difficult winter season I have seen in all the years I have been in business, our UK retail division has been very disappointing and this has had a significant effect on our results.”
Turnover rose 5% to £215.4 million.
