Debenhams sales rise defies retail gloom
DEBENHAMS said it would meet forecasts for year profit as it defied the general doom and gloom in the retail sector with a jump in second-half sales.
The company said that consumers were still buying “treat” items like cosmetics while childrenswear was also performing well.
Debenhams said sales at stores open more than a year, excluding VAT sales tax, were up 1.5 per cent in the 17 weeks to 25 June. It forecast year-end net debt of about £400m.
Deputy chief executive Michael Sharp said: “We are very pleased with the figures. Cosmetics have been selling well and also mens’ clothes which is surprising as when times are tough those sales usually go down.”
The store said it had kicked its summer sale off a few days early but that trading had been resilient.
On the international front Sharp said the Middle East had been particularly strong with its Danish Magasin Du Nord also producing positive figures.
He added: “The Middle East has been very strong for us. We have always emphasised the importance of our international reach.”
On the rising prices of raw material costs, especially cotton, Sharp said that customers could expect an average five per cent price rise across all product ranges.
“We do think cotton prices will come back down, but not down to the low levels we had been used to seeing.”
Debenhams trades from 170 stores in Britain, Ireland and Denmark and about 60 franchised outlets in 24 countries.