Department store Debenhams has reported a 25% fall in profits following what the chief executive called a “challenging” first half.

Like-for-like sales were up 1.5% but below-expectation clothing sales were exacerbated by a weaker market in September and October to leave pre-tax profits down 24.5% at £85.2 million.

The group added that convenience became a much more important driver of customer behaviour in the crucial pre-Christmas period than in previous years and that this “favoured retailers with better developed multi-channel models than Debenhams”.

However, the group added that work on its store portfolio was continuing apace, with two new UK stores opened in the period, four new international franchise stores opened and the transformation of the Oxford Street branch into its international flagship store was completed on plan.
Michael Sharp, chief executive of Debenhams, said: "Whilst this has been a challenging first half, we are clear on the issues and are taking decisive action to address them. In particular we are focused on building a more competitive multi-channel offer for our customers and improving the operational effectiveness of the overall business.

"The Debenhams brand remains strong with sales continuing to grow and a resilient market share performance. Whilst we remain cautious about the strength of the UK consumer recovery, I am confident the changes we are putting in place will provide a better customer experience and, over time, stronger results for our shareholders."