British department stores group Debenhams today reported lower first-half profits, but warned that the outlook remained challenging as UK shoppers tighten their belts during the credit squeeze.
The company, which bought Roches Stores' outlets in Ireland in 2006, said headline pre-tax profits fell 12.4% to £94.1m sterling for the six months to March 1, down from £107.4m the same time last year.
'It is a tough market; consumer confidence is low,' CEO Rob Templeman said, blaming it on the credit crunch, rather than the economy.
Earlier, the British Retail Consortium said UK like-for-like retail sales fell in March for the first time in two years and at the sharpest pace in nearly three years, a sign consumers are feeling the impact of the credit crunch. Indebted shoppers have cut back on spending, under pressure from a cooling housing market and higher energy and food bills.
The retailer runs around 145 stores across the UK and Ireland. The group returned to the stock market in May 2006 at 195p a share, but has slumped since amid poor trading conditions.
