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Debenhams mentioned full-year profits will likely be decrease than anticipatedthe third time it has issued a revenue warning this year.
The division retailer blamed "increased competitor discounting and weakness in key markets" for the revenue shortfall.
It mentioned annual pre-tax profits would are available between £35m and £40m, beneath earlier estimates of £50.3m.
Debenhams' newest revenue warning comes regardless of a turnaround plan designed to chop prices and enhance gross sales.
Chief govt Sergio Bucher pointed to "exceptionally difficult times in UK retail".
Shares in Debenhams fell as a lot as 16% in early trading earlier than recovering barely.
Debenhams runs 182 shops within the UK, Republic of Ireland and in Denmark, the place it operates beneath the Magasin du Nord title.
Analysis
Debenhams is beneath strain. The large query is whether or not it might ship its turnaround plan rapidly sufficient to adapt to the massive structural modifications in retail in addition to a host of price pressures.
The retailer is caught between the necessity to bolster its funds however on the similar time make investments and revamp its shops.
It's now slicing again on capital spending subsequent year. Big department shops are costly to run and require fixed funding.
Some will likely be questioning whether or not will probably be in a position to spend what's actually wanted on its giant variety of shops to revive gross sales.
The boss is promising actual proof of progress within the autumn. The race is on to indicate that the technique is working and may ship some a lot wanted development in the important thing Christmas season.
Retail rout
Debenhams' newest warning provides to a refrain of current woes on the UK High Street.
House of Fraser, Marks & Spencer, New Look and Mothercare have all introduced retailer closures this year.
Competition from on-line retailers, greater import prices as a result of weaker pound, a rise in enterprise charges and squeezed family incomes have all mixed to make instances robust for High Street shops.
Debenhams mentioned gross sales had fallen in May and June due to rivals' discounting and weak client spending.
Like-for-like gross sales, which mirror gross sales at shops open for greater than a year, fell by 1.7% within the 15 weeks to 16 June. Digital gross sales grew 16% over the identical interval.
Mr Bucher who joined Debenhams in 2016, has launched a turnaround plan, placing extra emphasis on meals and sweetness and enhancing the agency's on-line platform.
However, in January the chain warned profits could be decrease this year after a disappointing Christmas trading interval.
In April, the retailer warned that the chilly climate in late February would eat additional into profits.
Nicholas Hyett, analyst at Hargreaves Lansdown, mentioned: "Half a decade of falling sales and heavy discounting has trashed margins and left the group struggling to make ends meet. Unfortunately it all feels like Debenhams is playing catch-up with an industry that's left it behind."
There was extra dangerous information for the retail sector as shares sportswear retailer Footasylum practically halved after it reported a slowdown in gross sales development and mentioned profits could be decrease within the coming year.
In its first outcomes since floating on the inventory market in November, revenues rose 33% to £194.8m within the year to 24 February with underlying profits up four% at £eight.4m.
However, chief govt Clare Nesbitt mentioned trading for the reason that begin of the brand new monetary year had been affected by weak client confidence, which means profits would present "more modest growth".
Footasylum goals to greater than double its 65 shops within the UK.
Stockbroker Peel Hunt mentioned there have been additionally longer-term considerations over Footasylum, as main manufacturers corresponding to Nike and Adidas focus on promoting on to shoppers and limiting the variety of retailers they use: "Footasylum may find that its access to the cool product files is restricted over time."