UK Apparel Retailer FCUK Group Interim Results Slipped 8.7%

Recently, British apparel retailers The interim results released by French Connection Group PLC (FCCN.L) (hereinafter referred to as "FCUK group") show that the group's total revenue totaled 69 million 200 thousand pounds, down 8.7% from 75 million 800 thousand a year ago, and the pre tax deficit remained at 7 million 900 thousand pounds a year ago.

It is reported that FCUK group has entered fifth years of losses, cash from 15 million at the end of 2015 to half of 7 million 700 thousand pounds. Facing declining performance, FCUK group Start implementing the store closing strategy. Last year, the group closed 13 loss stores. In the first half of this year, the group closed 5 loss stores, and will further shut down the same number of shops in the second half of the year.

However, the group also reduced its sales area by 15.8% because of its closing strategy, resulting in a 2.3% to 41 million 600 thousand decrease in retail revenue. At the same time, the group's performance in the licensing field has also experienced a serious decline, which has been greatly reduced by 20% to 2 million 400 thousand pounds by the European and North American wholesalers.

It is worth mentioning that while traditional channels are frustrated, e-commerce channels have seen a slight increase. It is understood that Interim results of FCUK group Electricity sales accounted for 4.2% of retail revenue compared with last year.

The total revenue of the medium-term group totaled 69 million 200 thousand pounds, down 8.7% from 75 million 800 thousand a year ago. Thanks to the increase in the proportion of retail sales, gross margin increased slightly by 50 basis points to 46%. The pre tax deficit remained at 7 million 900 thousand pounds a year ago.

According to foreign media reports, Rutland Partners LP, a British company focused on the continued decline in the performance of its acquisitions, began to join the retail consulting firm Quarto Advisors Ltd. research in 1 and February this year to acquire FCUK group at 40 million pounds. In addition to Rutland Partners LP, other private equity companies were also considered to have privatized the FCUK group. It is reported that FCUK Group founder Stephen Marks is still its largest shareholder, holding 42% of the group's shares.