Marks & Spencer insists it is seeing early signs of improvement in its crucial womenswear collection despite sales declining for a ninth consecutive quarter.
Like-for-like clothing and homeware sales fell 1.5% during the first six months of its financial year and 1.3% during its latest July to September quarter.
Profits were 8.9% lower at £261.1m during the six months to the end of September - weighed down by the cost of the star-studded launch of its autumn/winter clothing range.
Primark has been quick to identify changing fashion trends Chief executive Marc Bolland has brought in fresh blood to boost womenswear and while the new collection won critical acclaim, its popularity among shoppers was a major test of Mr Bolland's turnaround plan.
Mr Bolland said: "In September we launched our first new collection with new advertising and improved store formats.
"Although only in store for three weeks of the half year, our Autumn/Winter collection has been well received by customers, and we have seen some early signs of improvement."
Its clothing performance was in stark contrast to that of rival Primark, which reported a 44% jump in annual operating profits to £514m.
Revenues rose 22% to 4.2 billion pounds as it added 10% store space over the year.
Primark, which now has more than 250 stores in Britain and across wider Europe, has performed strongly through the economic downturn as its low prices and quick adoption of fashion trends helped it become a destination for cash-squeezed shoppers hunting bargains.
While fashion continues to drag on M&S, it reported a 2.5% rise in like for like food sales over its first half - with 8% growth in sales outside the UK.
Its website revenues rose 28.5% in the same period.
But while suggesting that consumer confidence appeared to be improving, M&S said there was little evidence of this translating into higher spending, adding that it was cautious on the outlook for the rest of the year.
M&S food sales have continued to show strong growth That increases the pressure on the retailer's efforts to stem sliding clothing sales.
M&S launched its Leading Ladies campaign, featuring a dozen high-profile women including actress Dame Helen Mirren and Olympic boxer Nicola Adams, in September.
But the chain said the print, billboard and online advertising campaign was pitted against a "challenging" market.
It blamed "unseasonable" conditions at the start and end of the half, including a mild September, which it said led to heavier discounting in the marketplace.
It was that mild weather which was blamed for only a token increase in UK retail sales in October.
M&S will air its first Christmas TV advert on Wednesday, with the retailer claiming it was "well set up" for the key season with more innovation and choice than ever before.
Figures from the British Retail Consoritum showed like for like sales were up just 0.8%, with food declining for the second month in a row though improvements in electrical and electronic goods spurred hopes for the festive season.
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