Homewares department store Debenhams suffered a significant drop in like-for-like sales during the last two weeks of January as heavy snow kept shoppers from the high street.
In its first half trading update, the retailer revealed overall sales up 3% LfL, with an initial flurry of sales during the first 18 weeks offset by the consequent snowed-in weeks, where LfLs fell by 10%. To recover, the retailer pulled out all the promotional stops in February, focusing heavily on Valentine's Day, half-term and the month end. And, while the retail said these events "did drive some incremental sales," it admitted that "they did not fully recover those lost in January."

Furthermore, sales generated were mainly in lower margin clearance lines, meaning gross margin for the first 26 weeks will have fallen by 20 bps compared with last year. Gross margin, therefore, is expected to be flat, rather than the 10+ bps increase the retailer had previously hoped for.

Profit before tax for H1 is predicted at around £120million.

Looking ahead to the second half of the year, Debenhams is feeling a bit more optimistic, with a detailed review of forecasts for H2 indicating "robustness" and potential for growth.

Debenhams' chief executive Michael Sharp said: "Whilst the impact of the snow on the outcome for the first half is disappointing, it is now behind us and sales volumes have recovered. We are confident in our spring/summer ranges and that we can grow sales in the second half.

"Our strategy to build a leading international, multi-channel brand remains on track and we continue to focus on the four pillars of the strategy and investing in our business for long-term, sustainable growth."