Sales slumped by 8 per cent to£117.9 million for the six months to July 31 from£128.2 million last year. Profits bombed from£16.2 million in 2004 to just£5.1 million.
Marks said: 'The level of sales achieved was below what we had hoped, resulting in a 9 per cent reduction in like-for-like sales during the period. We recognise that this performance reflects missed opportunities.'
The retailer is trading from 16 per cent more space than the equivalent period last year. This includes four new stores, with total retail revenue in the UK and Europe broadly flat at£51.1 million compared with£51.2 million last year.
Wholesale customers have been cautious with their buying, said Marks. Revenue, at£39.5 million, way down from£51.4 million and the operating contribution for the UK/Europe division was£8.9 million compared with£20.0 million.
Forward orders from the early part of the selling season in the UK are behind last year, but Marks said he hoped to see an improvement over the coming months.
'We enter the second half of the year with ranges that have attracted much positive comment,' said Marks. 'However, we now anticipate that the outcome for the year will be around the lower end of the expectations we described in July.'
The retailer's worldwide licensing business is growing. French Connection has six outlets in China and both its Hong Kong and Japan retail businesses are 'improving steadily'. The mail-order businesses 'have continued to develop' and the first standalone store for Toast, a mail-order womenswear brand, is performing well.
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