French Connection has warned of tough trading conditions

The fashion chain said its 2005 profits will be between �20m and �25m, compared to last year's �33m. Its shares fell 10% following the announcement.

French Connection's sales warning follows disappointing recent results from Marks & Spencer and Boots.

Retail sales are now falling at their biggest rate in 22 years, the CBI says.

I can't say I'm falling off my chair, but it is worse than even we expected Retail analyst Iain McDonald Check French Connection's share price

The business organisation put the drop down to indebted consumers "tightening their belts" in the wake of a series of interest rate rises.

'Tough situation'

"The CBI announced yesterday that the High Street has witnessed the sharpest fall in sales volumes in more than 22 years - French Connection is not immune to this," said French Connection chairman Stephen Marks.

"We are encouraged by our strong collections, but the High Street is very tough at the moment."

Retail analyst Iain McDonald, of Numis Securities, said French Connection's profits warning was "unsurprising".

"I can't say I'm falling off my chair, but it is worse than even we expected," he said.

Official government figures for May showed the weakest High Street sales in six years.

According to the Office for National Statistics, the annual rate of sales growth fell to 1.3%, the lowest level since January 1999.