Jun 19, 2018
Debenhams issues third profit warning of 2018
British department store group Debenhams has issued its third profit warning of 2018, adding to the deep sense of gloom on UK high streets. Blaming "a background of increased competitor discounting and weakness in key markets," Debenhams said that its full-year pre-tax profits would be around £35m-£40m. Analysts had expected the retailer to make £50.3m. This comes after the company's main rival, House of Fraser, issued a plan to strike a lifeline deal with its landlords to close 31 stores, with the loss of thousands of jobs. Debenhams warned on profits in April, which it partly attributed to cold weather in March. On Tuesday, Debenhams told shareholders that it would have to make a "Material reduction" in capital expenditure to strengthen its balance sheet. Debenhams said on Tuesday that it was "Still pushing ahead with key strategic initiatives" despite the fact it now also planned to reduce its investments.
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