Debenhams says it has failed to revive sales

The company reported pre-tax profits of �105.5m for the six months to 3 March, but said full-year profits were likely to miss expectations.

Like-for-like sales - which ignore sales from new stores - had fallen by 6.9% in the past six weeks.

Debenhams had been pinning its hopes on its spring and summer ranges after winter sales were hit by mild weather.

"It is very early in the period but given this trend we must plan on the basis that like-for-like sales performance may be negative in the second half," said chief executive Rob Templeman.

We remain under-represented in many large cities and towns across the country which presents us with significant expansion opportunities Debenhams See Debenhams' share price

"We expect profit for the year to be below current market expectations."

Debenhams said the UK retail market was "challenging", with consumers having less money to spend following the three interest rate rises in the past year, together with higher utility and council tax bills.

Expansion

The profit warning hit Debenhams' shares, which ended Tuesday trading down 15% to 148.5 pence.

Debenhams only returned to the London stock market in May last year after two and half years in private equity ownership.

Despite the profit warning, the company is continuing to expand. Last year it bought nine stores from Roche in Ireland, and it has also opened seven of its smaller Desire format stores.

The growth meant that total sales for the first-half of the financial year were up 5.85% to �1.29bn, although like-for-like sales were down 4.5%.

Debenhams said it would refit about 60 of its stores in the next 18 months, and was also looking for sites for new outlets.

"Although Debenhams has a retail heritage of more than 100 years, we only have 132 department stores across the UK and Ireland," the company said.

"We remain under-represented in many large cities and towns across the country which presents us with significant expansion opportunities."