Shares in fashion retailer French Connection (FCCN.L) gain 2.2 percent as Altium Securities raises its "recommendation to "buy" from "hold" after the company reported late on Friday 2 October that it was closing all of its 21 stores in Japan in an attempt to stem losses.

Photo: www.frenchconnection.com

French Connection said the cash cost of the closure will be less than 0.5 million pounds and there will be one-off charges to the profit and loss account in the year to Jan. 31, 2010, amounting to approximately 2.5 million pounds relating to closure costs and asset write-downs.

The closures come after French Connection reported widening first-half losses in September, and the move prompts Altium to raise its forecasts for the full-year 2011 and up its target price to 70 pence from 50 pence.