'Give me more time' plea by Marks and Spencer chairman

At the company's annual general meeting yesterday, Mr Vandevelde urged shareholders to take heart, despite a fall in first quarter sales.

The firm's core clothing department again disappointed, with sales of clothing, footwear and gifts down 9.1 per cent in the 14 weeks to July 7.

Mr Vandevelde described the performance as disappointing, but stressed that the new management team was gradually turning things around.

He said: "When I joined, I promised results in two years - and I stand by that.

"We should see progressive signs of improvement as we focus on the key areas of products, stores and our people.

"Marks and Spencer is not ailing or beleaguered. Let us not forget it is still a fabulous business."

Overall, general merchandise sales dropped 9.2 per cent below the same period last year on a like-for-like basis, worse than many City forecasts.

Food sales remained strong, up 4.8 per cent on a like-for-like basis, reflecting the growth seen by the UK's major supermarkets.

Despite the growth in food, the company said total sales fell by 2.6 per cent, and by 3.8 per cent on a like-for-like basis.

However, the firm focused on an improved margin in its clothing business and the encouraging feedback it has received for its autumn range.

Mr Holmes said the company was now focused on delivering what its traditional customer wants.

"We are seeing a slowdown in the market share decline in lingerie, menswear and childrenswear," he said.

"But it is true that our womenswear share has continued to decline at a rate we have seen in the past. That is where most of our effort is being made.

"It's not that our customers are no longer interested in what we are doing. If that was the case we would be even more worried.

"They are making it clear to us what they want, and our teams are focused on that."

The firm hopes to return more than £2bn to shareholders next year. Most of this will be generated by property sales.