French Connection shrugs off UK clothing market woes

* Says quarterly pretax losses reduced from year earlier

* Sees FY results in line with market expectations

* Other clothing retailers had cut FY guidance

* Shares (Frankfurt: DI6.F - news) rise as much as 19.6 pct (Adds operations director comment, updates share price)

By Aastha Agnihotri

Nov 26 (Reuters) - French Connection Group Plc said its full-year results are likely to meet market expectations after a strong quarter for its wholesale business, giving it an edge over rival British fashion retailers in a tough market.

Shares of the company, known for its FCUK brand, rose as much as 19.6 percent on the London Stock Exchange (Other OTC: LDNXF - news) on Wednesday.

A number of big British clothing retailers, including Next Plc and SuperGroup Plc (Other OTC: SEPGY - news) , have trimmed full-year profit forecast in recent weeks as warm autumn weather kept coats and scarves on the shelf.

French Connection (LSE: FCCN.L - news) , attempting to turn around its business after years of underperformance, said it had reduced quarterly pretax losses for the three months ended Oct (HKSE: 3366.HK - news) . 31, helped by an improvement in its wholesale division and global licence income.

"We expect the results for the full year to be in line with market expectations," Chairman and Chief Executive Stephen Marks said in a statement.

Wholesale revenue, which rose 9 percent for the quarter, accounts for about 40 percent of group sales. For SuperGroup, wholesale accounts for about a third of revenue, while Next sells mainly through its own stores, online and by mail order.

As part of its turnaround effort, French Connection said last year it would cut inventory and redesign its products.

Increasingly erratic weather has driven many other European clothing retailers to buy goods more often and closer to home, rather than relying on seasonal collections sourced months in advance.

"French Connection bought tightly for the season," analysts at Numis Securities wrote. "We understand that the business is comfortable with its stock levels ahead of Christmas."

Though UK and Europe comparable revenue in the 17 weeks to Nov. 22 was 5.7 percent lower than in the year-earlier period, the company said its order book for spring 2015 was "strong".

Operations Director Neil Williams said margins in the retail division had benefited from cost-control measures.

Besides the French Connection brand, which brings in nearly 90 percent of revenue, the company sells the wholesale-only Great Plains (Other OTC: GTPH - news) ladieswear range. Its other brands are Toast, available online and in some high-street stores, and YMC (Taiwan OTC: 6423.TWO - news) brands, sold wholesale and in London stores.

French Connection shares were up 12.7 percent at 57.50 pence at 1436 GMT. Up to Tuesday's close, the stock had risen about 71 percent this year. (Editing by Robin Paxton)