Department store chain Beales has announced a profit warning and a fall of 6 per cent in like-for-like sales for the nine weeks to January 5.

The retailer said that, although its results for the year to November 3, 2007 will be marginally ahead of brokers’ forecasts, results for the financial year to November 1 this year are “likely to fall short of market expectations”.

Beales said that November 2007 sales were at similar levels to those in 2006, but that the economic environment deteriorated “significantly” in the final weeks of the year, coupled with a marked drop in footfall in December.

The retailer added that Christmas sales have improved slightly since then compared with Christmas 2006.

In a statement, the retailer said: “While our stocks have been well-controlled, our margins have been put under considerable pressure by the requirements to clear residual autumn/winter 2007 apparel and to meet the considerable promotional discounting in the high street.”

Beales will announce its full-year results on January 28.

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