Debenhams’ new chief executive Michael Sharp, who took over on Monday, would have hoped for a better City start to his tenure.
Broker Numis took the red pen to forecasts, although it should be pointed out the shift was not prompted by Sharp taking over.
Numis cut its current-year profit forecast from £178m to £152m – 10% below consensus and below its expectations for the year just finished.
Numis analyst Andy Wade said: “The self-help levers have been been pulled at Debenhams – the shift to own-bought, acquisition benefits, tight stock control, step-changed online presence and a favourable refinancing.”
Arden analyst Nick Bubb said: “The share price is getting attractive, but we still can’t muster a huge amount of enthusiasm. We have our 66p price target under review given the fall in the stock market.”