FASHION retailer Austin Reed was yesterday braced for half-year losses after poor ranges caused sales of its Country Casuals division to crumble further.

The group, based in Thirsk, North Yorkshire, said tough trading in the retail sector had also contributed to a ten per cent fall in like-for-like sales at the chain, which specialises in fashion for women aged over 40.

The disappointing update came as Austin Reed announced that head of retail David Lowbridge, who joined the group when it acquired Country Casuals in 1998, was leaving. He was going because his role as head of both brands was disappearing from the business, the company said.

The group, which operates 49 Austin Reed stores and 41 concessions, as well as 66 Country Casuals outlets and 140 concessions, said it expected pre-tax losses of £2.5m to £3m for the six months to August 14, compared with profits of £1.1m last time.

Chief executive Nick Hollingworth said Country Casuals had been late to pick up on the trend among its core customers to wear clothes previously aimed at younger women.

He said: "Women are wearing jeans and all sorts of more fashionable clothing now than they were when Country Casuals was in its prime."

The group was looking at updating its ranges in order to address this problem and would announce changes later in the year.

In contrast, the main Austin Reed chain - which includes both menswear and womenswear - continued to show signs of recovery with a three per cent increase in same-store sales in the 23 weeks to July 10.

Yesterday's update led brokers to cut their estimates for the full year, with Richard Ratner at Seymour Pierce reducing his estimate for profits of £2.5m to losses of £7.5m. Last year the group made profits of £280,000.

Austin Reed said a business review had identified areas for improvement, including the closure of Country Casuals in Canada. It will also pay suppliers five per cent less in order to cut costs.

These changes are expected to generate benefits of £500,000 in the second half of this financial year, although they will add £3.5m of exceptional costs in the current financial period.