Retailer French Connection has seen sales continue to fall, due to “difficult” trading conditions despite posting a modest annual profit for 2018.
The retailer posted an underlying profit of £100,000 for 2018, compared to £2.1m loss the previous year. Like-for-like sales dropped by 6.8% due to weaker sales in store and online, and group revenue rose marginally by 0.2% to £135.3m.
Wholesale revenue increased by 10% to £76.9m but, retail sales declined by 11% to £58.4m.
Stephen Marks French Connection founder and CEO started the company in 1972, later the retailer gained notoriety for its “Fcuk” branding.
Marks said, “I am pleased to report that we have achieved our target of returning the group to underlying profitability this financial year.
“This is only part of our overall journey; however, it represents a significant achievement given the results over recent years.
“This has been achieved despite the ongoing difficult retail trading environment in the UK and is the result of the changes we have made in all areas of the business to adapt to the ever-evolving markets in which we operate.”
Marks added, “While we still have a way to go to return the business to an appropriate level of profitability, I believe that we have made and continue to make significant progress.”