BRITISH DEPARTMENT store group Debenhams beat forecasts with a 10 per cent rise in annual profit after price cuts helped it win market share.
The firm, which trades from 169 stores in Britain, Ireland and Denmark, as well as 64 franchised outlets in 25 countries, said it made an underlying pretax profit of £166.1 million (€190.5 million) in the 53 weeks to September 3rd.
That compares with analysts’ average forecast of £162 million, according to a company poll.
Debenhams, ranked second after employee-owned department store chain John Lewis, said total sales, reported last month along with details of its market share gains, rose 2.9 per cent to £2.68 billion, with sales at stores open over a year down 0.3 per cent.
The group’s strategy is to drive profits by investing some of its gross margin into pushing sales.
“It is right to remain cautious about the strength of consumer confidence over the next 12 months, given the uncertain economic outlook,” said chief executive Michael Sharp. “Overall we are optimistic about our prospects.”
Debenhams, which ended the period with net debt of £383.7 million, down £133.1 million since the start of the year, is paying a total dividend of 3 pence after paying nothing last year. Shares have lost 12 per cent of their value over the last year. – (Reuters)
