Asos owns both online and stock marketsThursday, 20 September 2012
French Connection has had a tough first half of the year,
as it saw how its revenue was down by 7 percent to 96 million pounds. Meanwhile, ASOS sold 31 percent plus, totaling to 145.2 million pounds. Meanwhile, VF advanced its plans for growth in Asia.
"The last six months have continued to be very difficult for French Connection's UK/Europe retail business, which has had an impact on the Group results for the period," Chief Executive Stephen Marks said in a statement. Group loss before taxation for the first six months of the year was 6.3) million pounds, compared with a profit of 0.7 million pounds last year. Like-for-like sales at its UK/Europe retail division, which accounts for half of the company's revenue, fell 9.5 percent.
In London, shares in French Connection were down 8 per cent - 2p to 23p - after it reported a 6.3 million pounds half-year loss, which will affect its dividend.
In contrast, shares in online rival ASOS were 14 percent higher as it maintained its strong growth record with a better-than-expected 15percent rise in UK sales in the quarter to August 31. Shares in the company rose by 2.89 pounds to 23.30 pounds.
Group revenues were up 31 percent to 145.2 million pounds in the fourth quarter, the firm said in a trading update. UK saw a 15 percent rise whereas it went up by 42 percent in international trading. International sales now make up 65percent of the company's total business, it said in a statement.
"Profit for the five months ended August 31 and pro forma full year, are expected to be in line with expectations, and we approach our new financial year with continued confidence," said Chief Executive Nick Robertson.
Other big news was the announcement made by VF Corporation clothing manufacturer aims to add 1.1 billion dollars in revenues over the next five years through growth in its Asian Pacific business, particularly in China. Thus, the owner of brands such as Timberland and Vans unveiled its strategic plans to reach a total of 2 billion dollars in revenues by 2017 during an investor meeting held in Shanghai, China.
Aidan O'Meara, President, VF Asia Pacific, noted, "Our strategies for growth in Asia Pacific - winning big in China, expanding our footprint within other countries in the region, leveraging our scale and focusing on our largest brands - give us confidence in our ability to reach dollars2.0 billion in revenues by 2017 in this growing and dynamic market. VF has invested heavily and consistently in consumer research in China, which has helped us better understand Chinese consumers and position our brands in a way that speaks to their desires and aspirations."
In the same line, Karl Heinz Salzburger, Group President, VF International, provided a longer-term view on VF's international mix of business. "In 2012, we expect international sales to comprise about 37 percent of VF's total revenues. With the addition of Timberland and the continued strong growth expected in our Asia Pacific and European businesses, we now believe international revenues could account for 45 percent of total revenues by 2017."