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Debenhams posts half-year profit rise ahead of expectations

Debenhams posts pretax profit for the 26 weeks to February 28 of £88.9m
Debenhams posts pretax profit for the 26 weeks to February 28 of £88.9m

Debenhams, Britain's second biggest department store chain, posted a better than expected rise in first-half profit as fewer promotions boosted full-price sales.

An improved online offering also helped to increase demand. 

Pre-tax profit of £88.9m for the 26 weeks to the end of February was up 4.3% on a year earlier. It was also above a company-compiled forecast of £84.5m .
               
The company has 246 stores in 27 countries, including 11 in Ireland.

The company said that the Republic of Ireland remains a challenging market for it, as its like-for-like sales and profit here fell over the six month period. 

Debenhams has reduced promotions, improved online ordering and delivery options and filled under-used store space with concessions from the likes of Sports Direct and Costa Coffee to increase visitor numbers. 

While it had 14 days fewer on promotion overall, supporting higher sales of full-priced own-brand items, like-for-like sales growth of 1.3% was boosted by one such event moving forward one week into the half year period. 
             
Online sales grew 12.7%, boosted by a new next-day click-and-collect option. 

Like its rivals, Debenhams had seen sales suffer after mild autumn weather left winter clothing on shelves, however trends improved over Christmas and into the new year. 

Debenhams said it was on track to achieve full-year expectations. It added that in-store concessions had proved popular and would be extended to further stores, while more brands would be introduced, including the men's fashion chain Jack & Jones.