French Connection losses widen as designs fall flat

Struggling high-street fashion chain French Connection increased its losses last year as its latest designs failed to win over enough shoppers.

Founder and chief executive Stephen Marks blamed a poor first half of the year for the slump but insisted the second half was far better and that the company was on track for a long-awaited turnaround.

Investors appeared less impressed, however, as shares crashed 4.2p, or 9.6%, to 39.8p — a two-month low.

Shares had been rising on hopes that closing loss-making stores would help, but pre-tax losses rose from £1.5 million to £3.5 million.

Minus the closure savings, operating losses were £4.7 million. Sales dropped 8% to £164.2 million.

“Overall the performance for the year has been disappointing,” Marks said.

The company attempted to shore up its board, appointing Lee Williams, joining from Asos, as its new finance chief and Next’s former buying director Christos Angelides as a non-executive.