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Tuesday 13 April 2010

Debenhams rings up £123.6m profits

Department store Debenhams has posted an 18.6% rise in half-year profits and predicted stable trading ahead.

The retailer, which has 164 stores, said pre-tax profits beat market expectations, jumping to £123.6 million in the six months to February 27, compared with £104.2 million in the same period last year.
Debenhams, which has proved robust during the recession, said the second half trading environment would be "broadly neutral" for the firm.

Debenhams has looked to focus on its exclusive ranges such as its Designers at Debenhams lines, which include clothing from John Rocha, Jasper Conran, Betty Jackson and FrostFrench.
The move away from concessions has temporarily dented sales growth but boosted profit margins and the retailer has shifted its stores around to give its own-bought products more prominence.


Like-for-like sales have remained positive, with growth of 0.3% continuing throughout the half-year and up to April 3, while gross transactional values were up 8.6% in the period.

Sales for the first six months rose 11.6% to £1.19 billion.
Debenhams said new ranges during the first half included Principles by Ben de Lisi.


Principles, which traded through 94 stores as well as Debenhams concessions, succumbed to recession a year ago - but Debenhams bought stock from administrators to keep the brand in stores until the relaunch.
Debenhams said customers had responded "extremely favourably" to the new collection, which was launched in 125 stores in February and the brand will be expanded to all outlets later this year.

( Source: Press Association)
http://www.pressassociation.com