The company said profits for the six months to late August came in at �41.2m ($66m), down from �53.6m during the same period last year, and below most analysts' forecasts.

Revenues also suffered, with like-for-like retail sales - which strip out the impact of new store openings - falling by 6.7% on the year.

The firm blamed its weaker half-year performance on stocking strategies which reduced the choice available to its customers.

It also cited gaps in its range of classic ladieswear.

Matalan group chairman John Hargreaves described the figures as "disappointing," and said the company had taken steps to deliver better results in the autumn/winter season.

Autumn recovery?

"The board believes that the majority of actions needed to deliver a credible autumn/winter season and onwards have been implemented," he said.

The firm added that the autumn season had got off to a good start, with underlying retail sales for the five weeks to early October climbing 5.7% compared with the same period last year.

Matalan, one of the UK retail sector's most dazzling success stories during the late 1990s, came unstuck earlier this year when a poorly received spring clothing range caused sales to dive.

The company has also been rocked by boardroom clashes, with chief executive Paul Mason stepping down unexpectedly in March this year following disagreements with other senior managers.

Matalan has since become the subject of takeover speculation, with supermarket chains Asda and Tesco named as possible bidders.

Matalan itself has played down talk of a takeover approach.