French Connection struck a confident note in an update last week when it reported UK like-for-like growth, increased year-on-year demand for its winter wholesale collections and that first-half profit would meet expectations.

Seymour Pierce rates French Connection a buy and pointed out its low valuation relative to peers such as Ted Baker.

The broker reckoned French Connection’s share price weakness is unwarranted and stuck to its top-end full-year forecast of £10m.

Seymour Pierce analyst Kate Calvert said: “After the reorganisation programme that involved the disposal of loss-making Nicole Farhi and loss-making stores in the US, management can focus on improving returns of its FCUK brand.

“This approach together with the signing of a licensing deal with Sears US has helped to improve earnings visibility and momentum.”