With continuing tight control of operating costs and good cash generation against a more uncertain trading background, the group now anticipates that full-year 2016 profit before tax will be within the range of market forecasts.
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Debenhams said it had slashed prices and used “tactical” discounting after sales in its womenswear division remained low since the beginning of the year.
“In response to more uncertain trading conditions in this period, particularly in clothing, we have focused on managing stock and margins and generating cash”, he added.
In early morning trading, Debenhams shares had dropped 5 per cent, or 4.0p to 70.3p.
However, he said Debenhams, second to John Lewis [JLP.UL] by annual revenue, had the right strategy in place to counter changing shopping habits and he still expected profit for the year to be within the range of market forecasts.
Mr Sharp, who is stepping down tomorrow after almost five years at the helm, said the group was “holding its own” in a hard wider clothing market, which was more than 4% lower in its third quarter.
Amazon Fashion Europe vice president Sergio Bucher is to take over the Debenhams chief executive position in October.
In the meantime Sharp said Debenhams would stick to its current strategy of reducing its dependence on clothing.
He added: “It’s very unfortunate what’s happened at BHS and nobody in retail likes to see another retailer fail”.
Thirdly, and perhaps critically, it is hard to believe there would be a willing buyer, let alone buyers, for Debenhams’ exhausted estate of vast stores in a competitive environment where online sales are constantly chipping away at growth in shops.
Incoming boss Sergio Bucher will have a task on his hands to reinvigorate clothing sales.
Further, Debenhams mentioned its intention to join the increasing eating-out culture by adding more food and drink concessions such as Costa Coffee and Patisserie Valerie to its stores.
The group wants to add another 30 food offers by the autumn, with plans for around 40 per cent of its stores to have a new food concession by Christmas.
Under the direction of chief executive Michael Sharp, the retailer has developed its health and beauty categories and reduced its reliance on discounting and non-clothing sales and this has helped boost profits.
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Fashion retailer H&M has blamed cold weather for a worse-than-expected set of results in the second quarter.
