French Connection Share Discussion Threads

[nico115] 01/2/2020 10:05

Can anyone see what TW of share prophets wrote on FCCN?

[the millipede] 31/1/2020 10:51

Zoolook, I agree with you.

To be honest, I did not want a sale, especially one based around a share price of 35p ish. I want them to sort the stores out (either by turning the retail business around or by shutting the stores) and become a profitable business that delivers long term shareholder value, not a short term quick buck.

So in that respect, with a sale now off the table, I am happier than I was yesterday. The share price fall says more people disagree than agree but am just using it as an opportunity to add.

ATB TM

[zoolook] 31/1/2020 10:39

Of course there were buyers who wanted it but not at the price that Marks was prepared to sell at. I expect he was wanting £1. At least. ADVFN quote on last figures has the NTAV at 46p per share!

[tomboyb] 31/1/2020 10:07

You'd look at the share price and think well,. market cap is only 21million for FRENCH CONNECTION -

Yes it may well be oversold -

May bounce to 30p -

BUT -

hxxps://www.drapersonline.com/news/no-buyer-found-for-french-connection/7039377.article

Why does no one want it -

Indifferent times in Retail -

[tomboyb] 31/1/2020 10:04

Pre-Close Trading Update for the current financial year

The Company will announce its preliminary results for the year ending 31 January 2020 on 10 March. Reflecting the continued challenging trading conditions on the UK High Street, the Board currently expects the result to be a loss before taxation of between GBP1m and GBP2m. UK trading in both the Retail and Wholesale businesses has been more difficult during the second half of the year, especially during the fourth quarter.

[tomboyb] 31/1/2020 10:02

Blimey -

Not a good sign -

[zoolook] 31/1/2020 10:02

Why the thumbs down? Last time they fell this far I made a killing. Today’s drop is an overreaction re balance sheet strength. Price had already declined from 55p after initial excitement about sale. There are good parts to the business - just needs the stores to break even. Surely now even Marks has woken up to what’s going on on the high street and failing to sell.

[mrx001] 31/1/2020 09:43

Think they need a new CEO, time this one retired.

[zoolook] 31/1/2020 08:39

Was going to sell but with this drop ended up buying! Oversold

[irishlass2] 31/1/2020 07:17

Rns out and sales process over.

[jay083] 19/1/2020 10:39

I get the feeling nothing is going to happen here with regard to a sale. two weeks to go until we should get an update

[mrx001] 14/1/2020 22:56

Certainly the store closures seem like they should improve the bottom line. Although it seems to me that the chairman is probably not helping, either with closures or the sale. I didn't like the sale process being lengthened but hopefully we will get a positive outcome within a few months.

[paduardo] 03/1/2020 21:03

Another central London store shut.

French Connection at 10 Argyll Street, Soho London, W1F 7TQ is closed. As far as I can tell it is recent (last 3 months) based on checking FCCN store locator page on wayback machine (internet archive)showing it as active in April 2019 and most recent customer reviews on google being 3 months ago.

The store was advertised for rent by Savills in May 2019 (I am assuming when FCCN notified the landlord of their intention to vacate) at 400k per annum rent and 100k business rates (hxxp://retail.savills.co.uk/search/view/property/104692). I imagine, with the current state of retail, this is a reduction on what FCCN was paying.

It was a small shop so would expect it to be lost making. Not on the same scale as Oxford street (which I estimate would have been closed to 5m per annum rent + business rates - see my earlier post on 8th of August 2019 with links showing annual rent in excess of 3m) but still will be helpful.

Fingers crossed trading has held up and they report ok results. Even if the sale falls through I believe profitability is going to steadily improve as stores shut and the share price will rise.

[clarea] 18/12/2019 12:20

18BT I don't disagree with you lets just hope it plays out soon and there's more than one interested party involved.

[18bt] 18/12/2019 08:04

clarea, the other side of the accounting entry is that assets are increased. As an accountant I find these new rules extradordinary - they turn what I regard as a liability (i.e paying rent) into an asset.

[clarea] 18/12/2019 07:14

I would love it if your right but personally think mid forties best case, the new accounting rules brought in recently have turned the previous net cash position to a net debt situation and the high street for mosr retailers is still a pretty horrible place to be and sadly unless major goverment action on business rates don't see that changing anytime soon.

[nico115] 17/12/2019 12:16

Sports Direct have put the pressure on The only reason I can see for such s long process is the GE which is now over I expect an 80p bid in January and if not at least a resolution and no more talks and back to fundamentals and a 80p share price in 2 to 3 year time Strong buy 80pTarget

[simso] 16/12/2019 20:15

clarea - I agree I was surprised they opened a store in Duke Street, London. However, it is fair to provide some context. I believe French Connection started the current financial year (@Jan 19) with 33 High Street Leases. If you keep track on their Store Planner, you can see that 11 of those stores are now closed: Oxford St, Argyll St, Cornhill, Canterbury, Oxford, Cambridge, York, Leeds, East Kilbride, Montreal, Newmarket.

The new Store in Duke Street is not "prime pitch" and has a much more narrow front that those which closed...especially Oxford St, a huge corner unit next to Selfridges. The Rent on Duke St will therefore be a fraction of that paid on the expired Oxford St Lease. I suspect they hoped a small and cheap store on Duke St might pick up some turnover which they used to take on Oxford St and Argyll St.

To my mind, FY20 is a good year with 10 net closures...taking up from 33 stores down to 23. A good proportion of the closures have come in recent weeks...so it may be that next Financial Year commencing Feb 20 and onwards will benefit most from losing these "loss makers".

Hopefully the increased clarity on Government and Brexit might help bring the "Sale discussions" to a conclusion. If not, I am happy to sit and wait for that £10m+ loss to gradually reduce to nothing as stores close. The remaining profitable business with Wholesale, Licensing and Internet is much more attractive and I believe would ultimately attract a much higher rating.

[irishlass2] 16/12/2019 17:39

Some interesting buys today. Let's hope something is happening at last.

[clarea] 06/12/2019 22:43

Nope nothing happening till next market update in March 20 and re the expensive leases they got out of Oxford Street lease and then opened another store in London madness

[nico115] 06/12/2019 08:13

Does one share mean RNS imminent ?

[shabbadabbadoo2] 16/9/2019 16:10

Watch for the lower expenses as the failing shops are closed and the expensive leases ended. That should be starting to show in these figures tomorrow

[tiswas] 16/9/2019 09:32

Fingers crossed that there is finally a solution to what is going on here, dragged on for far too long.

No premium on offer if share price is anything to go by, just hope they continue to turn it around.

[jay083] 16/9/2019 08:34

not much interest ahead of supposed update tomorrow.... no trades for almost a couple of weeks.