French Connection reports disappointing losses

Fashion retailer French Connection has blamed rising costs and shrinking margins for “disappointing” losses. Losses rose to £3.5m ($6.2m) in the six months to 31 July against a loss of £2.5m at the same time last year.

It added that while UK and European sales had risen, increased overheads and staff costs had offset any gains.

Looking ahead the firm remained cautious warning that difficult economic conditions would continue to effect the business in the short term.

The group added that it would continue to build on the strong performance of its ladies’ wear division, and “mirror this success within our men’s wear business” reported the BBC.

“It would appear that the economic environment is unlikely to improve in the short-term and that therefore any gains we make will have to be achieved through significant out-performance by our ranges,” chairman Stephen Marks added.