British retailer Debenhams said today it remained cautious for the remainder of its financial year as like-for-like UK retail sales fell 4 per cent in the 19 weeks to January 13th.
Debenhams said total cumulative sales for the company rose 6.3 per cent in the period but that the market remained challenging.
The group said its sales mix in the first half had been affected by slower clothing sales than expected, the impact of the integration of the Roches Stores and their reliance on lower gross margin concession sales.
Debenhams, which reported a better-than-expected 68 per cent jump in pre-tax profit in October, said the integration of Roches Stores, acquired at the end of last year, was ahead of schedule, and that it expected to see further progress on gross margin for the full year.
Shares in Debenhams, which returned to the market in May at 195 pence each after two-and-a-half years in private equity hands, closed at 183-3/4 pence on Monday, valuing the group at around £1.6 billion.