Jan 12 Debenhams, Britain’s No. 2 department store chain, posted higher than expected sales in the last 19 weeks, driven by strong Christmas trading and growing online shopping.
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Like-for-like sales, an important measure of underlying growth in the retail industry, rose 1.9pc in the 19 weeks to January 9, against analyst expectations of a 0.3pc increase.
Michael Sharp, Debenhams’ chief executive, said: “For the last couple of years we have embarked on a strategy of planning prudently”.
It’s a stellar performance considering most retailers who have so far reported Christmas trading have disappointed, with NEXT shares falling to a 12-month low after blaming warm weather for a tough trading period.
Keith Bowman, equity analyst at Hargreaves Lansdown Stockbrokers, said: “The update offers firm reassurance”.
It said it traded the unseasonably warm autumn well thanks to a planned reduction in stocks of coats and other outerwear.
A Debenhams worker adjusts sale signs on Henry Street, Dublin, as retailers open their doors early to a relatively slow start on Black Friday.
He added: “We remain on track to deliver full year profits in line with market expectations”.
Next reported a 0.5% fall in store sales in the 60 days to December 24 and a slowdown in sales growth its Directory and online arm, while M&S suffered a 5.8% drop in like-for-like sales in its general merchandise arm, which includes womenswear.
Nearly half (46%) of online sales were collected in store in the run up to Christmas, with 31% of online orders collected this way in the first half of the year.
It said sales over the Christmas week hit a record.
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It sold nine million seasonal gifts over the period, with “must-have” gadgets including drones, with more than 25,000 sold. “Our stores have also performed well over the festive period, in particular our recently refurbished stores, which showed strong growth in the final week before Christmas”.
