Summer discounts boosts Debenhams profits
DEPARTMENT store Debenhams today forecast higher-than-expected UK profits after a summer of discounts and promotions helped boost its market share.
The group, which has 169 stores in the UK, Ireland and Denmark, reported top-line growth of 0.4pc on a like-for-like basis in the nine weeks to August 27, compared with a fall of 0.4pc over the previous 43 weeks
During the period, Debenhams started its summer sale five days early to steal a march on competitors, helping it enter the autumn season with low stock levels.
The group said gross margin for the full-year may be slightly down as a result of the discounting and competitive pricing, but the additional sales generated will help push profits for the year above City expectations of a 5pc increase to £158m.
The strategy helped the chain boost its market share of clothing and premium health and beauty.