French Connection founder Stephen Marks said the fashion chain was on the “right path” after it narrowed annual losses and stemmed a sales decline.
Mr Marks said it had been buoyed by the impact of a new design team, while its online business has grown and underperforming stores closed.
The group swung to a profit of £1.7m for the second half, leaving underlying losses for the 12 months to January 31 at £4.4m.
Mr Marks said it was an “encouraging improvement” from the £7.2m losses recorded the year before. Like-for-like sales in the second half in the UK and Europe were up 1.4%, after a 4.5% decline in the first six-month period.
It meant there was an overall decline of 1.4%, a sharp improvement on the 7% drop in the previous year.
Mr Marks, who is chief executive and chairman, said: “I am pleased that the initiatives we put in place to drive a turnaround in our trading performance have delivered better than anticipated results and that they continue to gain traction.
“We have accomplished a lot in the past year and will build on that momentum.”