There were sighs of relief in the Square Mile when Debenhams’ 52-week update brought no nasty surprises.
Although like-for-likes fell 5 per cent and gross margin was down, profit forecasts will be met.
Chief executive Rob Templeman flagged a more challenging retail environment, but said: “We believe the actions we have implemented across the business position us well for the new financial year.”
Numis expected to lower its target price following the update and cut its forecast from£150.2 million to£137.9 million, because of the gross margin position.
Pali International feared Debenhams’ dividend level was in doubt and said: “We don’t believe the recovery story, given the more challenging pre-Christmas trading we are likely to suffer in the sector post-Northern Rock.”
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