Analysts say Marks & Spencer will reveal a drop in profits of up to 20 per cent, when its annual results are published on Tuesday.
The results follow the announcement that the retailer is cutting 4,390 jobs as part of a radical restructuring.
Retail analysts predict annual pre-tax profit before exceptionals of between Stg£440 million and Stg£465 million, down from Stg£517 million last time.
City sources are predicting an unchanged total dividend of 9p.
They say the figures will inevitably reflect continued poor trading in UK clothing, together with further losses in Europe.
Mr Ian Macdougall, retail analyst at Williams de Broe, says: "Food has traded rather better and home furnishings a lot better, but despite cheaper sourcing, clothing sets the trend, and we expect a sharp decline in profits."
Mr Nick Bubb, retail analyst at SG Securities, believes the restructuring announcement shifted attention from the problems with the group's core UK clothing business.
He thinks more radical action is needed.
Mr Mr Bubb says: "In reality management appears to be tinkering at the edges of the UK problem."
PA