• The Independent, Friday, May 12, 2006 11:32 AM

In marketing circles, the old adage that sex sells has merit, but it's not always true. Just ask fashion retailer French Connection. First the company shocked and offended some shoppers with its FCUK acronym for its French Connection U.K. stores, and now it's paying the price for risqué TV spots depicting sex and violence. Sales and profits at French Connection stores are falling after the spot, which depicts two women beating each other up before being soaked with water and then embracing, provoked outrage from viewers. At its annual shareholder meeting, French Connection admitted that profits would again miss forecasts, and London's financial community slashed its profit expectations for the company. But the company, apparently adept at finding a silver lining in a black rain cloud, is said to be pleased that the ad created so much fuss. If nothing else, it has boosted the brand's profile after poor designs and high prices saw it fall off the fashion map, said retail analyst Matthew McEachran. "The campaign has been a talking point and they regard it as a good starting point."

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