French Connection sank into the red for the first time in 14 years today after its FCUK logo and marketing campaign featuring a lesbian kiss turned off shoppers.
The struggling fashion store posted pre-tax losses of £3.6m (€5.3m) for the six months to the end of July compared with profits of £5.1m (€7.5m) in the same period last year.
It came as sales at its stores plummeted from £117.9m (€173m) to just £11.2m (€16.4m), with retail experts blaming a tired image and over-priced clothing.
French Connection chairman Stephen Marks said: “The challenges we faced during the last financial year have continued to impact trading in the new year.
“It has taken longer than hoped to translate the changes we have made in our business into sales growth.”