French Connection regains swagger after decade in the doldrums

Popular items in the 2014 have included a £49 yellow jumper for women, which is also available in pink, and a newly launched £225 blue coat for winter.

"I think we are getting back our confidence and consumers like what we are doing," Mr Marks said.

The performance in the first half of the year means that French Connection could return to profit for the year as a whole.

George Scott, senior consultant at Conlumino, said: "French Connection is making steady progress in rebuilding its relevance, but it needs to pick up momentum to regain a competitive footing. Over the years, its lack of investment in brand and product innovation has been exposed by fast-fashion rivals such as Topshop, Zara and to some extent Asos, as well as the marketing pushes of more mid-market peers such Reiss and especially H&M via Cos."

He added: "French Connection’s steer away from discounting towards more full price sales in driving gains in retail gross margin – which was 57.5pc up from 56.3pc in 2013. While boosting its long term profitability potential, this change in tact is also helping to steer the brand slightly more upmarket, which together with it newer design credentials is giving it a fresher edge. Unfortunately weak trading in North America, which was impacted by some extreme weather, balanced out retail gains closer to home, as well as eating into margins as heavier discounting ensued."

However, shares in the company dropped 10pc following the results, with concerns over the cautious outlook statement and disappointment the retailer had not made more progress.

French Connection said: "Given the very competitive market place and tougher like-for-like comparatives in the period, we remain cautious about trading in the second half. As ever we are dependent on the very important Q4 period."

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