Department store chain warns that annual profits will be lower than expected after a fall in sales in the run-up to Christmas.
Debenhams said like-for-like sales in the UK fell 2.6% in the 17 weeks to 30th December amid a “volatile and competitive” market.
It said trading improved over the six-week Christmas period thanks to discounting, with like-for-like sales up 1.2% during that time, but the first week of the post-Christmas sale was below expectations.
Debenhams chief executive Sergio Bucher commented: “The market has been challenging, particularly in some of our key seasonal categories, and we have responded in order to remain competitive for our customers, which has impacted our profit performance.”
The retailer said it was “accelerating some aspects” of its strategic plan, Debenhams Redesigned, in order to “deliver a long-term sustainable future”.
It said early signs from new store format trials in Stevenage and Wolverhampton were “promising”.
Debenhams added that “reorganisation and restructuring activity” and a review of central costs were expected to generate savings of £20m.