Debenhams profits warning spooks retail investors Britain's second-largest department store warned investors that pre-tax profit for the 26 weeks to March 2 will drop 4pc year-on-year to around £120m, compared with analyst forecasts of £130m, after business stalled in a crucial January trading week. Attempts to recoup sales through Valentine's Day promotions failed to claw back sales, the company said, partly due to heavy discounting eating at margins. "Whilst the impact of the snow on the outcome for the first half is disappointing, it is now behind us and sales volumes have recovered," said Michael Sharp, chief executive. He added that the sales dip did not affect business forecasts for the rest of the year, with planned stock levels for the spring/summer range unchanged. The retailer's disappointing January followed a record Christmas when like-for-like sales at the chain rose 5pc. Trade across the high street suffered in January, when footfall dropped 3.3pc to a three-year-low and spending was estimated to fall 5pc compared with January 2011. Debenhams will report its results for the 26 weeks to March 2 on April 18. Shares in the company fell as much as 11pc at one stage in early trading on Monday.