Sales at fashion group French Connection’s core UK retail business have softened after a strong start to the second half.

French Connection’s UK and Europe retail division posted a 3.7 per cent increase in sales in the first 16 weeks of the second half, when like-for-likes advanced 1 per cent.

Womenswear and the Toast brand delivered “strong growth” in the 16 weeks to November 25, but menswear performed “less well”.

The retailer cautioned: “In recent weeks the sales performance across UK/Europe has become weaker and considerably more volatile.”

French Connection’s North American retail arm suffered a 12 per cent fall in dollar terms, or 10 per cent like-for-like, and margin was hit.

The retailer said: “In sterling terms the sales decline will be partially offset by the appreciation in the value of the US dollar compared with last year.”

French Connection sounded a wary note about Christmas prospects, saying: “The significant downward trend in sales in recent weeks indicates that we should be cautious in our expectations, despite the good start to the period in UK/Europe retail.”

French Connection’s wholesale businesses performed below last year’s levels.

KBC Peel Hunt analyst John Stevenson said: “We expect French Connection to be lossmaking this year, notwithstanding the uncertainty in delivering Christmas sales."

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