Associated British Foods, which owns the Penneys/Primark brand said on Thursday it expects a marginal decline in earnings for its 2014-15 year.
However, it added that growth in its Penneys/Primark discount fashion chain offset by weakness in its sugar business.
The group had previously guided that it saw limited opportunity to grow adjusted earnings per share in the 2014-15 year.
AB Foods also forecast a decline in adjusted operating profit but said the impact on earnings would be mitigated by much lower tax and interest charges.
It said sterling's strength against most of its major trading currencies would though have a negative effect.