A surge in sales in the final week before Christmas helped department store chain Debenhams weather tough autumn trading.

The company, which has 170 stores in the UK, Ireland and Denmark, said warmer weather throughout October and November impacted sales until a record Christmas week left trading for the 18 weeks to January 7 level on a year ago.

Shares jumped 8 per cent after investors expressed relief at the trading performance, which compared with some forecasts for a decline of up to 2 per cent.

Debenhams slashed prices by up to 40 per cent in a week-long promotion in November and was considered by analysts to be one of the most aggressive discounters in the seasonal period.

The strategy paid off after Debenhams said like-for-like sales including VAT improved by 6.5 per cent in the five weeks to December 31st.

Chief executive Michael Sharp said he was pleased with the performance: “We traded well despite the difficult environment as evidenced by strong sales in December, including record sales in the week before Christmas. Much of the growth came from the internet after online trade jumped by 35 per cent in the 18 weeks to January 7th.

PA