French Connection has revealed it expects to deliver better annual results than originally forecast, shaving £1m off its pre-tax losses.
The fashion retailer, which is currently undergoing a turnaround, revealed in an unscheduled trading update this afternoon that it expects pre-tax losses to be £4.7m. This compares to a £7.2m loss in 2013.
Analyst consensus for the year to January 31, 2013 was originally £5.7m.
French Connection said losses shrank after UK and Europe retail sales and margin were better than expected over the Christmas period. It added that the UK wholesale forward order book is “strong” and shipments have been “ahead” of last year.
“Trading across the rest of the group activities was broadly in-line with previous expectations,” it said.
French Connection ended the year with no debt and over £27m cash against £28.5m in 2013, which it said “reflects continued tight control of working capital”.
French Connection will reveal its full year results on March 12.