Snow hit Debenhams backs new ranges

The group said profits fell to £120.3m in the six months to March 2, in line with last month’s warning after its sales slumped by around 10 per cent during the snow-hit start to the year.

But chief executive Michael Sharp said he was confident in the group’s spring and summer ranges and market-beating online sales, which surged by 46 per cent in the first half.

“We expect to make further progress in the second half despite consumer sentiment remaining weak and challenging market conditions,” he said.

Debenhams said it maintained its market share last month despite enduring the coldest March for 50 years.

A four per cent hike in like-for-like online sales helped offset a 1.1 per cent fall across the high street chain in the first half and Debenhams said its internet trade grew three times faster than the market.

It is planning to launch a next day delivery service in time for Christmas under aims for online to sales to reach £600m.

The group’s store revamp plan is also helping offset highly competitive high street trading, with like-for-like sales up six per cent across shops that have been overhauled.

It completed nine store makeovers in the first half and aims to start or complete another 12 by the end of the year.

Shares rose five per cent on the group’s brighter outlook, but Cantor Fitzgerald analyst Kate Calvert warned the group may struggle to match its expectations given the tough conditions and costs of its investment programmes.

“We are concerned about second half profitability and trading since the beginning of March,” she said.

“Anecdotal feedback is that the industry is having a tough time given the late start to spring.”