Debenhams reaps the rewards of focus on its own-brand products

The department store group, which has stores in Leeds, York, Sheffield, Harrogate, Doncaster, Scarborough and Hull, also said the second half looks promising.

Debenhams is seeing the benefit of moving away from low-margin concessions to own-brand products, particularly its Designers at Debenhams ranges which include Jasper Conran, Betty Jackson and Julien Macdonald.

Own-brand products are generally higher margin, so the group expects to see an improvement in profits.

The group said it had maintained sales despite the cold weather during January and February and the challenging economic environment.

The group's like-for-like sales grew 0.3 per cent in the 26 weeks to February 27 despite some disruption from the snow.

This was an improvement on the 0.1 per cent increase after 18 weeks and better than the flat sales predicted by analysts.

Debenhams increased its market share in menswear and childrenswear although womenswear was reduced following the shift from concessions to own-bought ranges.

The group has seen a strong early response to last month's revival of the Principles brand, which is now designed by Ben de Lisi.

Principles, which traded through 94 stores as well as Debenhams concessions, succumbed to recession a year ago. Debenhams bought stock from administrators to keep the brand in stores until the relaunch.

Chief executive Rob Templeman said: "Against the backdrop of challenging trading conditions, we have delivered profit growth on a consistent basis for the past 18 months."

He said the second half would benefit from the introduction of 150,000 square feet of space occupied by the new Principles ranges and H! by Henry Holland – a new range that will be launched today.

The group opened four new stores in the six months to February,

including a flagship department store in Newcastle and three new Desire by Debenhams stores in Monks Cross in York, Kidderminster and Witney, Oxfordshire.