Debenhams, the UK's second-largest department-store company, said full-year earnings rose about 20 per cent, helped by the addition of more-profitable lines and a recovery in sales in the last 10 weeks.
Gross margin for the year ended August 28th "will exceed previous guidance," the London-based retailer said today, repeating a statement it made in July.
Revenue at stores open at least a year will be about the same as 2009, Debenhams also said, an improvement on the 0.4 per cent decline reported by the company for the 42 weeks ended June 19th.
The retailer has replaced areas in its outlets run by other retailers with more-profitable own labels, boosting earnings at the expense of sales. Full-year pretax profit excluding some items rose to about £150 million, according to the company, which will report full results on October 21st.
"Our profit performance has been pleasing, but we believe it is correct to remain cautious about the level of consumer confidence," chief executive Rob Templeman said.
Debenhams said last week it would cut prices on new-season merchandise by as much as 25 per cent to lure shoppers, instead of at the more traditional end of the fall shopping season, as it seeks to gain market share amid restrained retail spending.
UK consumer confidence rose in August for the first time in four months, Nationwide Building Society said today.
Bloomberg