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High-street retailer Debenhams issued a pessimistic outlook for the next six months in its half-year results this morning.

The department store chain, which suffered poor clothing sales in the run-up to Christmas, revealed today that its like-for-like sales in the 26 weeks to March 3rd were down 4.5 per cent on the equivalent 2005/06 period.

Although pre-tax profits grew by 34.4 per cent to £105.5 million, Debenhams chief executive Rob Templeman said that sales had been "below our expectations".

"Clearly it is very early in the period but given this trend we must plan on the basis that like-for-like sales performance may be negative in the second half," he said.

"Any shortfall in sales will inevitably impact on gross margins and we are therefore taking actions to mitigate its effect on profits in the second half."

He added that investment in "more contemporary presentation" and other improvements would also help drive sales later in the calendar year.

Overall conditions on the high street have seen widespread doom and gloom in the last few months after a middling Christmas performance.

Many shopkeepers have resorted to heavy price discounting in order to lure consumers onto the streets, but have faced an uphill battle as confidence remains relatively low.

Last month's figures pointed to substantial improvements in the overall situation, however, giving retailers strong expectations for continued growth in April.