British fashion group French Connection has offered a glimmer of sales hope as it attempts to allay investor fears over another year of plummeting profits.
The label reported pre-tax profits down 67% to £4m for the year ended January 31 - marking the second year of a double digit decline in earnings after a 53% profits drop in the previous year.
But the group said encouraging sales growth in its autumn/winter 2006 and new spring/summer collections represented the start of a 'new phase' for the label.
The group said it hoped to achieve 5% growth in sales over the next year in its retail division.
The decline in group profits comes despite the brand's spending £6.3m more last year on advertising and promotional work in a bid to halt its sales troubles and turn around its image.
