Debenhams, Britain's second-biggest department stores group, posted full-year profit towards the top end of expectations and said underlying sales had turned positive at the start of its new financial year.
The firm, with over 150 stores in Britain and Ireland and more than 50 franchised outlets overseas, said it cut debt by over £400m stering to £590.3m in the year ended August 29 and had repaid £100m more since then.
It also said today that Chairman John Lovering would step down in March.
It said that its profits before tax, goodwill and one-off items was £125.2m, near the top of analysts' forecast range of £115-126m. Sales at stores open at least a year fell 3.6%, but were up 0.6% in the seven weeks to October 17.
'The outlook for consumer behaviour remains hard to predict,' CEO Rob Templeman said. However, he said the group was encouraged by the response of customers to the changes it have made to its offerings, referring to the firm's switch to more own-bought clothes, such as its Designers at Debenhams ranges, rather than concessions.
Debenhams shares have almost quadrupled in value this year, helped by a £323m equity fundraising in June which put an end to worries about its debts.
The firm had been dogged by concerns about its borrowing since returning to the stock market at 195 pence a share in 2006 after two and a half lucrative years in private equity hands.
Britain's retailers are also starting to benefit from signs of recovery from recession. An industry survey last week showed retail sales growing at their fastest annual pace in September for five months.
