High-street names do better. . . and worse
Freddie George, analyst at Seymour Pierce, noted that trade magazine Retail Week said Debenhams had gained market share in the menswear, children and womenswear areas.
He expects like-for-likes sales to be down by 3% for the half year to the end of February, a “small improvement“ on the first few months of the financial year.
Forecasting annual pre-tax profits of £90m, he said this figure could be upped if first half earnings are better than expected. The markets are braced for fashion chain French Connection to reveal a loss at its final results on Wednesday.
The group has been battling to revive sales in recent years as demand for its FCUK brand has waned, with the tough conditions on the high street adding to its problems.
French Connection said in November that a strong summer performance from UK retail gave way to “weaker and considerably more volatile“ sales as the banking crisis hit the high street.
The firm overhauled its ladies’ fashion lines last year and said it saw strong growth in sales of its womenswear collection and Toast mail order division in the UK since August.
But menswear continued to perform less well, despite a restructuring of its design team and hopes for a boost from its winter menswear ranges.
The group’s retail business in North America – representing 14% of group turnover – fared worse, suffering a 10% slide in like-for-like sales in the 16 weeks to November 25.
Numis analysts forecast a pre-tax loss of £5 million for the year, “reflecting the tough market conditions“.
