Debenhams strips away High St gloom as it unravels reliance on clothing

Department store Debenhams today defied the gloom descending on Britain’s high streets, with a first-half profit that showed a move to reduce its dependence on clothing was paying off.

Responding to Next’s warning that this year would be the worst since 2008, Debenhams’ outgoing chief Michael Sharp acknowledged the market was tough, but said the retailer had become “more resilient”.

The early timing of Mother’s Day and Easter had been just as influential as any macroeconomic factors, Sharp said, and Debenhams’ decision to expand non-clothing ranges, such as beauty, gifting, home and accessories had helped it weather the storm.

Fewer discounts and promotions and improvements online also played a role, he said.

It revealed it had followed up a strong Christmas with a 1.1% rise in like-for-like sales in the six months to February 27. Pre-tax profit was up 5.5% to £93.8 million in the six months to February 27, exceeding analyst expectations for £91 million.

Sharp announced plans to step down in October. Chairman Ian Cheshire today said his successor, who is being picked from internal and external candidates, will be revealed in the “next few weeks”.

Debenhams said it was on track to hit full-year expectations and is hiking the interim dividend by 2.5% to 1.025p a share.