Debenhams cuts dividend and warns on outlook as profit halves
Debenhams has issued a warning for the full-year outlook for the second time in four months
The retailer, which issued a profit warning in January, also said Matt Smith, its chief financial officer, was quitting the retailer to become finance chief of rival Selfridges.
The 240-year old Debenhams is one year into a turnaround programme led by Chief Executive Sergio Bucher, a former Amazon and Inditex executive.
His plan to return Debenhams to profit growth involves closing some stores and revamping the rest, cutting promotions and improving its online service, while seeking efficiencies by simplifying the business.
However, progress has been hampered by a squeeze on UK consumers' budgets, a shift in spending away from fashion towards holidays and entertainment, as well as intense online competition.
Debenhams made an underlying pretax profit of 42.2 million pounds ($59.9 million) in the 26 weeks to March 3 - below analysts' average forecast of 44 million pounds and the 87.8 million pounds made in the first half of its 2016-17 year. Revenue fell 1.6 percent to 1.65 billion pounds.
It cut its interim dividend by 51 percent to 0.5 pence.
Debenhams said that based on its current view of the second half of the financial year, full-year pretax profit was expected to be at the lower end of the current range of broker forecasts of 50-61 million pounds.Published: by Radio NewsHub