Fashion leaders French Connection have warned that the economic climate will remain difficult for the next year, but they believe they can deal with the problems.
The company last year closed their business in Japan and sold their Nicole Farhi subsidiary, and beat profit forecasts, posting pre tax profits of £7.3million.
The company had made a £700,000 profit the previous year, marking a remarkable turnaround.
The companies gross profit margin also increased by 0.5% which helped to offset a drop in sales in the US, UK and around Europe.
Chairman Stephen Marks said,”The current economic climate is clearly difficult and it appears likely that it will remain so in the coming year.
“However, I am confident that we have the strength… to build further on the growth we have achieved.”
The company echoed the earlier warning from Benetton and said that increased raw material costs would have a negative effect on sales, as it wasn’t the environment to increase prices.