French Connection said UK and European like-for-like retail sales dropped 6.1% in the 15 weeks to November 13, with womenswear struggling during the period.
French Connection said retail revenue had been slightly lower than expected but had been offset by further growth in wholesale revenue. Wholesale revenue in the UK and Europe was up 13% compared to the same period last year.
The retailer said wholesale forward orders for its spring 2011 ranges were “well ahead of last year” which will help increase revenue towards the end of the financial year.
Menswear, ecommerce and contemporary womenswear retailer Toast were cited as performing well, however it said the womenswear business was “softer” than last year.
Like-for-like sales in North America fell 4.0%.
French Connection said negotiations for the closure of selected US stores had been completed or were well advanced. It said it expects to have completed the programme and settled the remaining cash costs of this restructuring by January 31, 2011.