Friday 23 March 2018

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.

Press Association

Business Newsletter

Read the leading stories from the world of Business.

Also in Business