Debenhams, the British department store chain that last year took over Roches Stores, yesterday issued a profit warning for its current financial year but said its Irish operations were performing as expected.

A spokesman for the company declined to give any sales figures for the Irish operation, but said that the acquisition, which saw it take control of nine Roches outlets, was expected to be earnings enhancing in the next financial year.

He reiterated earlier comments that seven of the nine Roches outlets had been converted into Debenhams stores and that the remaining two would be completed by the end of this financial year.

Across the whole group, the company yesterday reported total sales up 5.8 per cent, at £1.29 billion (€1.9 billion) in the six months to March 3rd. On a like-for-like basis, however, sales were down 4.5 per cent meaning that any growth came from the addition of new retail space, rather than the success of the group's retail offering.

The company attributed the decline in sales to unseasonably warm winter weather and the timing of Easter.

In the six weeks from the start of the second half (March 4th), like-for-like sales were down 6.9 per cent, the company said, adding that, as a result, it expects profit for the year to be below market expectations.

Pretax profit in the first half was £105.5 million, an increase of 34 per cent on the year-earlier period.

Debenhams said the development of its 29 new Debenhams stores and five smaller Desire outlets would weigh on finances in the short term.

Shares in Debenhams, which relisted on the London Stock Exchange last May, fell 15 per cent, closing down 25.5 pence, at 148.5 pence.