Intimate Brands has been listed on the NYSE since 1995

The firm said it hoped for little improvement later in the year, and warned that its full-year results would be "down significantly" on 2000.

Intimate Brands, which also has interests in beauty products and home decor, has seen its shares fall by some 40% since last November.

Many big US retailers, especially in luxury and other high-end markets, have seen sales slump this year, as American consumers rein in spending on non-essential goods.

Limited opportunities

Limited Inc, Intimate Brands' parent company, confirmed the lingerie retailer's gloomy sentiments in its own outlook for the third quarter.

The company, which operates Limited, Express, Structure and Lerner New York stores, said its quarterly profits were cut in half, while same-store sales fell by 5% during the quarter.

In the longer term, however, the outlook for Intimate Brands is reckoned to be more cheerful.

The US lingerie market remains fundamentally robust

Over the last three years, sales of bras in the US have risen by 6-8% per year, with particular growth in once-neglected sectors such as products for the fuller figure.

Companies such as Marks & Spencer, desperate to boost flagging fortunes, have targeted the underwear market as one of the few consistently lucrative niches within the clothing business.

In the US, Victoria's Secret has won the market-leading position by virtue of aggressive promotion.

Its webcast of new season's fashions, for example, has earned a legendary place in internet lore, with the 1999 show claiming to have been the most popular web event ever.