French Connection shares surge despite results

Shares in British fashion retailer French Connection Group surged 16 per cent today as analysts said its grim first-half results…

Shares in British fashion retailer French Connection Group surged 16 per cent today as analysts said its grim first-half results were not as bad as they might have been.

The clothing chain said full-year profit would be at the bottom end of its expectations amid tough trading as it posted a 69 per cent fall in first-half earnings.

The company, which said in July that full-year profit would be in the £20 million to £25 million range, also said its order books for both the winter 2005 and summer 2006 seasons were 15 per cent below the levels of the same time last year.

First-half like-for-like sales at French Connection's retail business in Britain and Europe fell 9 per cent, worse than the 5 to 7 per cent declines reported by many other non-food retailers and a clothing market decline estimated at about 5 per cent.

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The company said worsening market conditions had made improvements difficult to achieve, although changes made in the early summer season to its collections had resulted in an improvement in the sales performance.