Debenhams suffers blow from Beast

● But department store group says it is holding share in challenging market

and the right plan to navigate them and return Debenhams to profitable growth.”

Debenhams and other retailers are facing severe structural pressures and the firm has started shifting its focus away from fashion towards beauty products and gifts.

Under chief executive Bucher, who joined the retailer in 2016, the chain has also been refurbishing stores as part of his turnaround strategy.

The retailer also announced that its chief financial officer, Matt Smith, is leaving to take up a post as finance director at Selfridges. A search for his replacement is currently under way.

Nicholas Hyett, equity analyst at Hargreaves Lansdown, said: “It’s hard to believe, but there are bright spots in Debenhams results. Online sales are rising rapidly, the ‘destination’ components of the high street stores are doing well, clothing is holding up and headline sales are actually not far off market expectations – especially once you exclude the impact of the Beast from the East.

“Unfortunately all of that is essentially irrelevant, because margins are totally shot to pieces. The combination of low sterling increasing the cost of stock, and heavy discounting, means gross margins have tumbled.”