French Connection profits warning

FASHION group French Connection hit the market with a shock profits warning today, saying results for the year to end January will fall 'significantly below' City expectations.

The stark warning, coming before the crucial Christmas selling season, sent shivers through the retail sector.

The group had already warned of poor trading during the summer months. But today chairman and founder Stephen Marks said the final winter collection, brought into the stores in the past fortnight, had failed to give the hoped-for boost to sales.

Like-for-like figures on the retail side have crashed by 18% since 1 August as shoppers shunned the autumn and winter collections, which were 'not sufficiently attractive', he said.

'The board's view is that it is unlikely that there will be an improvement in this trend during the rest of the season.'

Analysts had been hoping for full-year profits of around £44m. But the group said it expects to fall 15% short of last year's £38m, leaving profits at around £32m.

Marks said steps have been taken to strengthen the spring ranges which are due to be introduced into the shops in late January.

'We believe that these actions should further improve the appeal of these ranges to our customers,' he said.

Marks recently said that, contrary to widespread speculation, French Connection intends to retain its FCUK slogan.