Matalan has been cutting costs and jobs

Pre-tax profits for the six months to August 27 fell to �30.7m from �42.5m at the same point last year.

The retailer also said like-for-like sales at its 190 stores sank by 6.7%.

Matalan warned the tough times would go on, with sales in the past nine weeks down 10.6% after the recent warm spell hit demand for winter clothing.

The same nine-week period last year had resulted in the strongest growth of the year for the retailer, which stocks a variety of goods including clothing, house wares and luggage.

"Trading conditions continue to be difficult and there is little evidence to suggest this will improve in the near term," chairman John Hargreaves said in a statement.

However, the Lancashire-based firm said that a �5.1m cost-cutting drive it began at the start of the year - which included 300 job cuts - would improve profits by saving �15m a year.