French Connection (LON:FCCN) - Nothing priced in
Mar 15th 2013 - Edison Investment Research today published a report on French Connection (FCCN.L, LSE:FCCN, LON:FCCN) entitled "Nothing Priced In". In summary, the report says:
With an EV of -£5m, the market is giving little credibility to the initiatives announced in September 2012 to restore profitability through improved sales and gross margins, despite some positive early signs. While onerous lease commitments (£194.3m FY13) might cause concern, the annual rent roll of £28.4m looks manageable short term. With consumer brand recognition in the UK running at 98.7% and the signing of new licensing deals in UK accessories, brand equity remains strong.
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