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| Debenhams shares fall on snow woes | |
| (35 minutes later) | |
| Shares in department store Debenhams have fallen 10% after the firm said bad weather in January would dent its profits for the first half of 2013. | |
| The firm said trading was "severely disrupted" by the snow that fell across the UK in mid to late January. | The firm said trading was "severely disrupted" by the snow that fell across the UK in mid to late January. |
| Although like-for-like sales in the 26 weeks to 2 March rose about 3% year-on-year, there was a 10% sales fall in the period from 14 to 27 January, it added. | Although like-for-like sales in the 26 weeks to 2 March rose about 3% year-on-year, there was a 10% sales fall in the period from 14 to 27 January, it added. |
| It now thinks first-half profits will be about £120m, less than hoped. | |
| "To recover sales lost due to snow, we introduced additional promotional events in February focused on Valentine's Day, half-term and the month end," the statement said. | "To recover sales lost due to snow, we introduced additional promotional events in February focused on Valentine's Day, half-term and the month end," the statement said. |
| "Although these events did drive some incremental sales, they did not fully recover those lost in January. | "Although these events did drive some incremental sales, they did not fully recover those lost in January. |
| "Further, the sales generated were mainly in lower margin clearance lines, which means that gross margin for the first half will be [about] 20 basis points lower than last year. | "Further, the sales generated were mainly in lower margin clearance lines, which means that gross margin for the first half will be [about] 20 basis points lower than last year. |
| "Therefore, gross margin for the year is now more likely to be flat than the 10 basis points increase previously guided to." | "Therefore, gross margin for the year is now more likely to be flat than the 10 basis points increase previously guided to." |
| However, Debenhams said it believed that its second-half forecasts were "robust" and that sales would continue to grow as expected. | However, Debenhams said it believed that its second-half forecasts were "robust" and that sales would continue to grow as expected. |