Bonmarche Holdings' underlying pre-tax profits fell to £2.5m in the 26 weeks to 24 September - down from £6.4m last time
Revenues fell by 4% to £93.1m and pre-tax profits were down 63.7% at £2.0m.
Online sales were down 1.1% for H1 but increased by 2.3% in Q2.
The interim dividend is maintained at 2.5 pence per share.
Chief executive Helen Connollysaid: "I believe that Bonmarche has significant potential to grow as a retailer serving the 50 plus women's value clothing market, a belief that has strengthened with my continued exposure to the business. Work has already begun, to modernise and simplify our operations and improve basic disciplines - key foundations for the more strategic priorities of developing the customer proposition and improving customer journeys.
"I have been encouraged by the enthusiasm and commitment of the Bonmarché team, and remain confident that despite the difficult trading conditions, the business will resume growth during FY18."
At 9:43am: (LON:BON) Bonmarche Holdings share price was +3p at 90.5p