Debenhams shares plunge after poor Christmas sales

The department store has heavily revised its projected profits after revealing that the store achieved poor sales during the Christmas period.

Analysts had been expecting the store to make £110 million in pre-tax profit  in the six months leading up to April 2014 but the stores currently estimates the much more modest figure of £85 million.

Debenhams have said they did not have the final surge in sales they had expected in the last week of the Christmas period.

The store has also attributed some of  the loss in profit to the “highly promotional” nature of the retail market.

The store was not expected to reveal the information until mid-January but released its trading statement early.

Since announcing the news the stores share price has dropped by 10.5% on the last trading day of the year. Falling by 10.15p per share.

In recent years the company has spent a significant amount on modernising and upgrading its stores haveing spent more than £25 million on refurbishing its flagship store in London.

Debenhams also plans to open a further 14 stores in the next four years.