Debenhams shares up by 16% with help from perfume and lingerie

British department store chain Debenhams outshone rivals Marks & Spencer and Next over Christmas, helped by clever stock management and demand for perfumes and lingerie.

Shares in Britain’s second largest department store group, soared by almost 16 per cent after it reported underlying sales for the 19 weeks to January 9th rose 1.9 per cent, beating analyst expectations for an increase of 0.3 per cent.

Debenhams said its plan to cut stocks of coats and jackets paid off during a warmer than usual autumn, which Next and M&S blamed for disappointing sales. Strong sales also lifted the shares of online fashion retailer Boohoo. com. "Debenhams's trading update was reassuringly unremarkable. With its busiest trading period behind it, the business remains on track to deliver profits in line with expectations," said David Stoddart, analyst at Edison Investment Research.

Surprise rise

Britain’s top supermarket chains are also showing signs of getting to grips with an industry in turmoil, with Sainsbury’s winning market share in the key Christmas period and

Morrisons

delivering a surprise rise in underlying sales.

Monthly data from market researcher Kantar Worldpanel showed number two chain Sainsbury’s grew sales and market share over Christmas, the only one of the big four to do so and sending its shares as much as 4.7 per cent higher.

Shares in fourth-placed Morrisons, meanwhile, jumped as much as 14 per cent after its own Christmas trading update showed the first rise in underlying sales since 2012.

The British Retail Consortium said on Tuesday that spending rose at its weakest quarterly rate in more than a year as stores competed to offer discounts. But 2016 could be better for the big supermarkets.

Analysts think they are closing the price gap with discounters, improving customer service. – (Reuters)