Debenhams fights back

Debenhams, Britain’s No. 2 department store chain, announced positive sales following 12 months of one of the worst periods in its history. The retailer saw an 11.5% increase in full year pre-tax profits to £131.4 million.

Furthermore, sales since the beginning of September are up 2.1%. The announcement sent Debenhams shares, which halved from March to September, up 0.25p to 103.75p.

Chief executive, Rob Templeman, said the summer weather helped, but was firm that improvements to its ranges were the primary reason for the recovery and said that their autumn and winter ranges are being well received.

Mr Templeman added that it is early days and the retail industry is challenging at present.

Finance director, Chris Woodhouse, added that it’s been a difficult 12 months but a lot of effort has been put in and we are quietly confident about trading going forward.

Analysts said the numbers were respectable, but highlighted that they compare with a rocky period.

Chief executive, Rob Templeman, said the company is improving just as the entire retail industry faces a downturn. The 135 stores are being re-fitted and the chain has brought new brands like Ted Baker, into the mix. He concluded that the department store is planning to open 29 stores during the next 4 years.

At today’s price, Debenhams is valued at £880 million.

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