No fashion connection with French Connection

"French Connection has failed to adapt to the changing price perceptions within the UK clothing Market. It is neither cheap enough to compete with the likes of Zara, H&M and Top Shop, nor is it distinctive enough to command the same premium as someone like Ted Baker", says Iain McDonald at Numis Securities. Richard Ratner at Seymour Pierce adds" The company seems to blame the general retail malais, but we believe it is more to do with French Connection having got it badly wrong last winter."

Successful high street retailers such as Top Shop and Zara are known to interpret the next designer fashion craze and incorporate them into their collections just weeks after the designs are presented on the catwalk. Shares for French Connection droped 8% valuing the group at about £230m, half the value it was worth just over a year ago.The group yesterday said that it expected profits to be in the region of £20m to £25m. It also pointed to low sales despite an improved stock range and added that wholesale orders had fallen as department stores, which stock FCUK ranges, had cut back on reorders.