French Connection disappointed by profits haul

Fashion group French Connection today warned the tougher high street conditions facing retailers would hamper a business revival this year.

The group said its performance was “clearly not good enough” after pre-tax profits fell 22% to £3.1m (€4.05m) in 2007.

It added: “The continuing difficult economic environment predicted for the new year is likely to have an impact on the rate of improvement in our retail business.”

Like-for-like UK retail sales were 3% lower as a modest improvement in ladieswear was more than offset by declines in men’s fashion.