High-street names do better. . . and worse
ANNUAL figures from French Connection and trading updates by Debenhams and Thomas Cook will provide a useful measure of consumer confidence this week.
Debenhams is expected to report a solid performance when it updates on trading tomorrow.
The department store chain said in January that sales of its designer ranges were booming in the economic and consumer downturn.
The group, which has 153 stores in the UK and Ireland, said its Designers at Debenhams ranges achieved double-digit sales growth ahead of Christmas as shoppers turned to cheaper designer equivalents in the tougher times.
The trend helped Debenhams to deliver better-than-feared trading figures, with like-for-like sales down 3.3% in the 12-week period since October 21.
This compared with a decline of 4.2% for the previous six weeks and meant profits for the whole 18-week period improved on a year earlier.
Debenhams has debts of almost £1bn after its former private equity owners heavily increased the company’s debt burden, but it is not expected to breach any developments on covenants, refinancing or rights issues.
Since its last update, Debenhams has offered up to 25% off new season items in a four-day campaign to win customers.
The retailer also bought stock from the administrators of high-street fashion retailer Principles and has a temporary licence to continue operating the brand.
