Debenhams posts rise in Christmas sales

DEPARTMENT store group Debenhams posted a rise in sales, profit and market share in the run-up to Christmas and said it would accelerate its store refit programme.

The firm forecast a further increase in gross margins in 2010, but in common with many other retailers it was cautious on the outlook.

"Looking forward, with the rise in VAT and a general election pending, the consumer environment remains uncertain and difficult to predict," chief executive Rob Templeman said.

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The firm said sales at stores open at least a year increased 0.1 per cent in the 18 weeks to January 2 compared with the same period in the previous year.

That compares with analyst expectations ranging from a fall of 2 per cent to a rise of 1 per cent, and an increase of 0.6 per cent in the seven weeks to October 17.

Debenhams, which trades from over 150 stores in Britain and Ireland and more than 50 franchised outlets overseas, said gross transaction value was 1.6 per cent higher, with gross margin improving "significantly."

Following the success of the refit of its Cardiff store the firm plans to accelerate its store refit programme. Full-year capital expenditure guidance was raised to 115m ($186m).

Shares in Debenhams have more than doubled over the last year, helped by a 323m equity fundraising in June which ended worries about its debts.