Icelandic retailer Baugur issued a profit warning on Monday and revealed CEO Tryggvi Jonsson will step down this week and be replaced by owner and chairman Jon Asgeir Johannesson.

The company, whose portfolio includes a supermarket chain in Iceland and Debenhams and TopShop franchises in Sweden and Iceland, said its results would be hit by a revaluation of supplies and restructuring costs.

Baugur, which recently sold its 20 per cent stake in UK fashion giant Arcadia to billionaire retail entrepreneur Philip Green, said it has axed 45 stores and also plans to sell all of its outlets in Florida.

The firm said in a statement: "It is clear that the change in performance will affect the profit of Baugur Group in the present operational year."

It added it expects the restructuring to lift its performance over the next few months and is optimistic of hitting future profit targets.