Clothing sales at Woolworths were down for the 25 weeks to July 26 compared with the same period last year, which contributed to a 6.7% fall in retail like-for-like sales over the period.
However, the chain is expecting its back to-school campaign to boost its fashion sales over the coming weeks.
Chairman Richard North said: “Our clothing sales were down because the retail climate is tough at the moment.
“But our Worth It! clothing launch has gone well and we are expecting a good back-to-school season – children will always need new clothes.”
He added that Woolworths was continuing its talks with international franchise partners to open standalone stores for its kidswear own label Ladybird.
It is also looking to introduce more concessions from value retailer Peacocks in its larger stores.