British department store chain Debenhams said it expects "broadly neutral" trading conditions after first-half profit beat analysts' estimates.
So-called headline pretax profit increased to £123.6 million in the 26 weeks ended February 27th, beating estimates, the London-based retailer said today in a statement. Net income fell to £80.1 million pounds from £81.2 million pounds a year earlier, after a higher taxation charge.
"Gross margin performance was much stronger than expected," said Kate
Calvert, an analyst at Shore Capital with a "buy" rating on the stock. She said pretax profit was 7 per cent ahead of analysts' estimates, excluding one-time items.
Sales at stores open at least a year rose 0.3 per cent in the 31 weeks to April 3rd, the same pace as in its first half.
Larger competitor Marks and Spencer Group Plc said last week that sales rose 5.1 per cent in the previous quarter, as customers responded to its seasonal fashions. Debenhams has been converting floor space from less-profitable concessions to its own fashion and homeware ranges to boost profitability.
Debenham's fell 1.2 per cent to 77.5 pence in London trading. The shares have risen less than 1 per cent this year.
Bloomberg