Debenhams to hit market forecasts

Debenhams saw like-for-like sales fall 0.9% for the year ended August 30 but said full year profits will be in line with expectations.

In a pre-close statement Debenhams said that gross transaction value rose 1.3% against the previous year.

Market share gains were made across all major product categories and own bought products made a strong contribution to sales. Gross margin was flat on the previous year.

Debenhams said that terminal stock at the year end was at a historically low level, enabling us to enter the new financial year with a very clean stock position.

Debenhams chief executive Rob Templeman said: "Debenhams ongoing investment in product design, quality and value, plus the differentiation of our exclusive designer ranges, has resulted in market share gains both overall and for each major clothing category and enabled us to deliver what we believe to be a creditable sales performance given the retail climate."

Templeman added: "Trading in August showed a marked improvement over July but the UK retail sector continues to be adversely affected by wider economic concerns. We will continue to focus on meeting the needs of our customers to enable us to make further market share gains in what continues to be a challenging macroeconomic environment."

Last month Debenhams said it had a good start to sales of autumnal stock. For more click here.