Debenhams upbeat after strong sales

Department store Debenhams today forecast higher-than-expected profits after a summer of discounts and promotions helped boost its market share.

By The Newsroom

Published 20th Sep 2011, 09:24 BST

The group, which has 169 stores in the UK, Ireland and Denmark, reported top-line growth of 0.4 per cent on a like-for-like basis in the nine weeks to August 27, compared with a fall of 0.4 per cent over the previous 43 weeks.

During the period, Debenhams started its summer sale five days early to steal a march on competitors, helping it enter the autumn season with low stock levels.

The group said gross margin for the full-year may be slightly down as a result of the discounting and competitive pricing, but the additional sales generated will help push profits for the year above City expectations of a five per cent increase to £158m.

The strategy helped the chain boost its market share of clothing and premium health and beauty.