Debenhams /Wikimedia Commons
(qlmbusinessnews.com via telegraph.co.uk – – Thur, 19 Apr 2018) London, Uk – –
Debenhams has reported an 84.6pc drop in pre-tax profits to £13.5m for the 26 weeks to March 3.
It comes as the retailer saw like-for-like sales drop 2.2pc “against a challenging UK market background”.
The company added that the final trading week of the period was disrupted by extreme weather conditions, forcing it to temporarily close nearly 100 stores.
The retailer also blamed a “disappointing Christmas season” for increasing competitor discounting and ultimately hitting underlying earnings for the UK, which fell 39.3pc over the half year.
Debenhams is now forecasting that its pre-tax profits for full year 2018 will be at the lower end of the current range of forecasts for between £50m to £61m.
Chief executive Sergio Bucher said: “It has not been an easy first half and the extreme weather in the final week of the half had a material impact on our results.
“But I am hugely encouraged by the progress we are making to transform Debenhams for our customers.
He added: “We are holding share in a difficult fashion market, and in other categories such as furniture, exciting new partnerships have the potential to transform our offer.
“We approach the remainder of the year mindful of the very challenging market conditions, but with confidence that we have a strong team and the right plan to navigate them and return Debenhams to profitable growth.”
Debenhams has also announced that its chief financial officer Matt Smith is leaving to take up a post as finance director at Selfridges. A search for his replacement is currently under way.
By Press Association
