Sales have trashed brand, says Ratner
Debenhams has unveiled dismal pre-Christmas trading figures, blaming tough retail conditions for a 4.7 per cent slide in like-for-like sales.

Total cumulative sales to December 10 were up 5.7 per cent, compared to the same period last year.

Debenhams chairman John Lovering said: 'The remaining weeks of this month and the early January period are some of the biggest of the year and as such can have a significant impact on underlying sales growth.' The retailer will issue a trading statement on January 16.

Seymour Pierce analyst Richard Ratner slashed his profit forecast. He said: 'This is a pretty awful number, although we had been expecting a poor performance from the company. It is far behind our forecast.

'We therefore downgrade this year from£193.7 million to£185 million. For the following year, we trim from£229.2 million to£222 million.

'It is our belief that in trying to boost sales with Megadays and Spectaculars, Debenhams has done much to trash its own brand.'

The weather and its affect on clothing sales has also been a factor, Ratner conceded.

Debenhams' downbeat update came after Ratner's warning that high street retailers could be facing the worst Christmas in 25 years.

Last week, Woolworths issued a pre-Christmas profit warning, which is highly unusual for the reatiler.