Debenham optimistic as sales rally starts

Sep 18 2006 By Evening Gazette

Department store chain Debenhams today delivered an upbeat trading statement and said there were signs that conditions in the retail market were improving.

In the retailer's first update since its return to the market in May after an absence of two years, Debenhams said sales for the year to September 2 rose by 6.6% compared with last year. Like-for-like sales rose by 0.5%.

Chief executive Rob Templeman said: "We are pleased with our performance and remain well placed as we enter the new financial year.

"Although as widely reported, the retail market was challenging in the early part of the summer, there are signs that trading conditions are improving."

Debenhams said it expects to post pre-tax profits in line with expectations when it reports full-year results on October 24.

Since re-listing, Debenhams has opened two new department stores in Doncaster and Workington.

Its acquisition of nine stores from Roches in Ireland in August has now been approved by the Irish Competition Authority and the stores are to be converted to Debenhams during the current financial year.

The number of smaller format Desire by Debenhams stores has also increased by two.

This brings Debenhams' portfolio to 131 department stores and five Desire stores trading from 10.1 million square feet in the UK and 30 international stores.