French Connection sales slump

SALES at former retail high-flier French Connection have plummeted by 17% over the past five weeks as its new ranges failed to woo back shoppers after a disastrous autumn and winter season.

The dire trading news came as the group, famous for its controversial FCUK slogan, reported its first fall in profits for nine years.

In line with the shock pre-Christmas warning which sent its shares slumping, profits for the year to the end of January have tumbled by 15% to £32.3m pre-tax. Total turnover for the year was down by 1% to £265.7m.

Founder chairman and 42% stakeholder Stephen Marks admitted the group's ranges were just not fashionable enough, and said it was working hard to improve product design.

'We have learnt lessons from this and feel confident that we will use this experience to return to our growth track and build a stronger business for the future,' he said.

Overall trading in the High Street has been 'very difficult' in recent weeks, but 'even in the light of this our current trading is very disappointing', he said.

The figures show that the UK and European retail operations fell into the red last year, with losses of £1.6m against a profit of £11.1m the previous year. There were also losses in North American retail. However, wholesale operations pushed profits ahead by 29% to £31.7m and licensing income was also up.

There is some good news for shareholders as the dividend is lifted by 50%-plus to 5p.