Shares in Debenhams fell more than 20% on Thursday after the department store operator issued a profit warning following a "highly competitive and volatile" Christmas trading period.
The company said it could not rule out job cuts after like for like sales in the 17 weeks to 30 December fell by 2.6% in its core UK market.
As a result, the company said it now expected full-year, pre-tax profit in a range between £55m-£65m, substanitally below consensus forecasts of about £80m.
Debenhams said it had taken promotional action that resulted in a stronger than expected six-week period over Christmas. It said: "Against tough comparatives, like for like sales rose 1.2% in constant currency and digital sales grew 15.1%".
It added, however, that the first week of post-Christmas sales was below expectations despite further markdown investment.