January snow is to blame for a fall in profits, department store Debenhams said today, but the group insisted things are looking up.
Britain's second biggest department store group forecast a better second half of the year after posting an expected 5.4 percent fall in first-half profit.
Debenhams made a pretax profit of £120.3 million in the 26 weeks to March 2.
That was in line with guidance given in a March profit warning when the firm said snow in January had dented sales, but down from the £127.1 million made in the 2011-12 half year.
"We expect to make further progress in the second half despite consumer sentiment remaining weak and challenging market conditions," said chief executive Michael Sharp.
Many British retailers are finding the going tough as consumers, whose spending generates about two thirds of UK GDP, fret over job security and a squeeze on incomes. Cold, wet weather has also held back sales.
Last week Marks & Spencer, Britain's biggest clothing retailer, posted a 3.8 percent underlying fall in fourth-quarter general merchandise sales.
Debenhams' first-half sales rose 3.5 percent to 1.54 billion pounds. Though sales at stores open over a year increased 3.1 percent, gross margin fell 20 basis points.
The firm maintained its interim dividend at 1.0 pence a share.
Shares in Debenhams closed Wednesday at 82 pence, valuing the business at 1.03 billion pounds.
