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Festive sales woe for Debenhams | Festive sales woe for Debenhams |
(20 minutes later) | |
Department store group Debenhams has reported a fall in underlying UK sales over the Christmas period and said it remains cautious about future trading. | Department store group Debenhams has reported a fall in underlying UK sales over the Christmas period and said it remains cautious about future trading. |
Like-for-like UK sales - which exclude the impact of new stores - fell 4% in the 19 weeks to 13 January, following lower-than-expected clothes sales. | Like-for-like UK sales - which exclude the impact of new stores - fell 4% in the 19 weeks to 13 January, following lower-than-expected clothes sales. |
Including new store space, total sales rose 6.3% in the period, but Debenhams said the market remained tough. | |
In December, the firm had warned that sales were being hit by mild weather. | In December, the firm had warned that sales were being hit by mild weather. |
'Challenging' market | 'Challenging' market |
Debenhams said that disappointing clothes sales and the impact of integrating the Roche stores in Ireland, which it bought last year, would hit half-year profitability. | Debenhams said that disappointing clothes sales and the impact of integrating the Roche stores in Ireland, which it bought last year, would hit half-year profitability. |
Chief executive Rob Templeman said the firm's "sales performance has improved since we reported figures for the period to 10 December 2006 but the market remains challenging". | Chief executive Rob Templeman said the firm's "sales performance has improved since we reported figures for the period to 10 December 2006 but the market remains challenging". |
He added that "we are cautious about the outturn for the rest of this financial year". | He added that "we are cautious about the outturn for the rest of this financial year". |
While Debenhams struggled over Christmas, rival department store groups have enjoyed a better time. | While Debenhams struggled over Christmas, rival department store groups have enjoyed a better time. |
John Lewis saw like-for-like sales at its stores leap 10.8% in the five weeks to 6 January, while same-store sales at House of Fraser were up 7.3% in the four weeks to 30 December. | John Lewis saw like-for-like sales at its stores leap 10.8% in the five weeks to 6 January, while same-store sales at House of Fraser were up 7.3% in the four weeks to 30 December. |
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