Debenhams says profit in line with expectations

Debenhams said today full-year profit would be in line with its expectations and noted signs of an improvement in trading after…

Debenhams said today full-year profit would be in line with its expectations and noted signs of an improvement in trading after a tough start to the summer.

Britain's second-biggest department store chain - which has three stores in this State - said like-for-like sales rose 0.5 per cent in the 52 weeks to September 2nd.

It said profit before tax and exceptional items for the period would meet its expectations but did not give a figure.

Last month Debenhams confirmed it is taking over the leases on nine Roches Stores in the Republic in a deal worth at least €29 million.

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"Although, as widely reported, the retail market was challenging in the early part of the summer, there are signs that trading conditions are improving," chief executive Rob Templeman said in a statement.

Debenhams has underperformed the UK retail sector by 7 per cent since their flotation amid concerns that trading has been tough during a generally hot summer, that the firm has lost ground to resurgent rival Marks & Spencer and that its private equity owners had left little value in the business.