Department store group Debehams has issued yet another profit warning as it posted interim results on Tuesday morning. Like-for-like sales dipped 6.9 percent in the first weeks of the second have, with a fall of 4.5 percent in like-for-like sales for the half year ended 3 March. Meanwhile, pre-tax profits rose 34.4 percent to 105.5 million on sales up 5.8 percent to €1.29 billion, in line with expectations.

Rob Templeman, Debenhams chief executive, said: “Although the comparative period last year was particularly strong, sales achieved during these weeks are below our expectations. Clearly it is very early in the period but given this trend we must plan on the basis that like-for-like performance may be negative in the second half.� Templeman blamed the decrease on “an underperformance in our menswear division and disappointing sales from our outerwear and knitwear ranges.� Chairman John Lovering attributed the difficulties to three interest rate rises, higher utility and council tax bill and subdued wage increases.

The company, which opened its first store in Russia during the first half of the year, intends to take action to rectify the situation, although Templeman conceded that profits will nevertheless fall below market expectations. He pointed out that the company had focused its capital expenditure on new store openings and acquistions, including Allders and Roches. Looking forward he said: “We are now planning to refit around 60 of our stores in the next 18 months.â€? He said the refits may cause some “disruptionâ€? but insisted the investment would ensure that Debenhams stays “at the forefront of the UK retail market.â€? “Throughout the business we are investing in better in-store service levels and more contemporary presentation,â€? Templeman concluded. “I am confident that our investment in product, value, service and our stores will drive like-for-like sales later in the calender year.â€