Debenhams sees Christmas trading profit

Jan 13 2010 by Iain Laing, The Journal

DEPARTMENT store group Debenhams says it is pleased with Christmas trading after profits improved for a second year in a row.

The chain said the 0.1% improvement in like-for-like sales for the 18 weeks to January 2 was in line with internal forecasts, although growth was limited by its decision to move away from concessions into own-bought merchandise.

It said the strategy benefited margins, while profitability was also boosted by fewer price reductions compared with a year earlier.

Chief executive Rob Templeman said: “Our continued focus on cash margin means that, for the second year in succession, we have delivered an increase in profit before tax over the Christmas trading period.”

The firm’s portfolio will be boosted in the coming weeks by the return of the Principles brand name, which Debenhams bought after parent company Mosaic Fashions went into administration.