British retailer Woolworths reported a narrower first-half loss and said that it remained cautious about the retail environment heading into the key Christmas period.
The retailer, which has lost sales and profits in the face of stiff competition, said pre-tax profits went from £64.9 million (€93 million) to £64.7 million. Revenues were up by 16 per cent at £1.14billion for the 26 weeks ended August 4.
Woolworths' like-for-like sales rose 0.6 per cent in the period, while no update was provided on current trading. "We're encouraged by the improved financial performance of Woolworths in the first half," Chief Executive Trevor Bish-Jones said.
He said 2entertain, Woolworths' joint venture with the BBC, had put in a strong performance - helped by demand for the TV series Planet Earth.
However, the economic outlook demanded a note of caution, he said. "I think it's fair to say the recent rises in interest rates and uncertainty surrounding financial markets do, however, inevitably mean it is appropriate to remain cautious in the run-up to Christmas."
The retailer unveiled an adjusted pretax loss of £59.2 million (€85 million) for the six months to August, versus a loss of £66.8 million in the same period last year.
Shares in Woolworths, one of Britain's most recognised high street names with more than 800 stores, were up 2.5 per cent in early trading. The stock has underperformed the UK general retailers' index by 30 per cent this year.