Debenhams has revealed that its full-year profits are expected to fall below expectations – at between £35-£40 million – as it issues its third profit warning this year. It has blamed high levels of competitor discounting as well as weakness in key markets for its problems. Its like-for-like sales had fallen by 1.7 per cent in the 15 weeks to 16th June with digital sales growing by 16 per cent during the period.
CEO Sergio Bucher commented that UK market conditions had been extremely difficult but that Debenhams was reducing capital expenditure and focusing on digital and product improvements. “We see clear evidence of progress as our digital growth outperforms the market and customers respond positively to our product improvements and format trials. We have also put in place a leaner operational structure and made a number of important hires so that we are well-equipped to navigate the market turbulence.”
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