The chain is pinning its hopes on a controversial advertising campaign and its summer and winter 2006 ranges, although Marks warned recovery would be 'slow.'
'These results are a major disappointment and we are doing all we can to reverse the decline,' he said.
Pre-tax profits were£12.2 million for the year to the end of January compared to£33.7 million in the previous year.
Revenue came in at£246 million, down from last year's£266 million. UK retail profits were down from£10 million to£2.2 million.
Like-for-like sales fell 5 per cent for the year as a whole with the decline 'considerably reduced' in the second half of the year.
UK wholesale profits dropped from£28.4 million to£15.3 million with sales falling by 26 per cent.
Wholesale order books for summer 2006 in UK/Europe are also 25 per cent below this time last year.
Numis analyst Steve Davis said: 'Not only have FCUK's retail customers been cutting back on orders in the face of weak demand generally, but a number have been reducing their exposure to the FCUK brand and it will take a long time for this trend to be turned around.'
The controversial advertising campaign featuring a lesbian kiss, launched last month, drew 100 complaints from viewers sparking a referral to the Advertising Standards Authority.
Analysts predict profits before tax of£11.3 million for the current year.
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