The chain, owned by Icelandic investment group Baugur, also outlined plans to introduce a number of new brands to its stores including Versace, Hugo Boss and Lauren, Ralph Lauren's new womenswear line.

Mango will also be introduced for the first time to the Leeds store.

In a trading update for the six months to July 26, House of Fraser said total sales rose by 2.9 per cent, although like-for-like comparatives were not given.

Underlying earnings increased by more than 30 per cent to about £16m over the period.

The group, which has 61 stores including sites in Doncaster, Grimsby, Huddersfield, Hull, Leeds, Sheffield and Skipton, described current trading conditions as "difficult".

House of Fraser was bought for £351m in November 2006 by the Icelandic Baugur-led consortium Highland Acquisitions.

The new management team has targeted a more upmarket customer as part of an image overhaul, throwing out 140 underperforming brands and bringing in new ones such as Whistles, Jaeger and All Saints.

The chain is on track to spend £150m on an overhaul of its stores by the end of this year.

Major brands set for launch include leading designers such as Anya Hindmarch, whose I'm Not A Plastic Bag eco-bag was a global sell-out last year, Episode, Kenneth Cole and The White Company.

In addition new private label offerings such as Criminal, a fashion brand aimed at young male shoppers, will be launched exclusively at its 61 stores next month.

Sales at its refurbished stores were 8 per cent ahead of the rest of the chain, while sales at two new stores in Belfast and High Wycombe were 15 per cent ahead of plan.

Chairman Don McCarthy said: "I think our chief executive John King and his management team have done a great job in repositioning House of Fraser in what can only be described as difficult trading times.

"We are pleased with our performance over the six months."

In addition to its investment in Leeds, House of Fraser is planning makeovers in Glasgow, London's Oxford Street and Manchester.

Stores at Bluewater, Reading, Dundrum in Dublin and Jenners in Edinburgh will also receive significant investment.

Mr McCarthy said: "We have set our target to be the UK's premium department store chain.

"Our investment programme alongside the introduction of new brands and the strength of our private labels, will continue to drive us towards this goal.

"We feel certain that this will enhance our customers' shopping experience and position us as the destination for fashion brands."

Last year the group spent £1.5m on a makeover for its Hull store.

The store in Ferensway received a complete refurbishment and dropped its traditional name of Hammonds.

The store revamp co-incided with the launch of the £200m St Stephen's shopping complex in Ferensway as House of Fraser muscled in on the increase in trade caused by the new centre.

House of Fraser, which has 6,500 staff, began life in 1941 as the drapery business Fraser, Sons & Co in Glasgow and was floated on the stock exchange before being bought by Baugur.

Other well-known names in the Icelandic firm's retail portfolio include Iceland and Hamleys.

It owns sizeable stakes in companies including clothing chains Moss Bros and French Connection and department store group Debenhams.