Debenhams was forced to issue a profit warning yesterday after a poor online performance and a 'highly competitive' festive retail market.
The department store said online delivery was 'lower than anticipated' and blamed weak clothing sales and unseasonal weather for the dire numbers.
Profit for its financial first-half is now expected to drop 26 per cent to £85 million, it said in a statement. Same-store sales in the 17 weeks to December 28 rose 0.1 per cent - well below inflation and equivalent to a sales drop in real terms.
The chain was not due to update the market for two weeks but was forced to release the statement early because of the material impact the poor performance will have on profit.
Despite the disappointment in the online performance, internet sales grew 27 per cent for the 17 week period and now account for 15.6 per cent of total sales compared to 12.4 per cent in the same period last year.
The rushed statement does not bode well for other retailers in competing categories. Analysts have already warned that Marks & Spencer's Christmas performance will mean this year's profits will be the worst for five years.
Debenhams said: 'We did not experience the anticipated final surge in sales in the last week of the period and as a result we expect the need for additional markdown to clear stock in January and February.'
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