Bhs to treble profits

Bhs is thriving since its takeover

Retail group Bhs confirmed its turnaround by reporting a strong rise in Christmas sales, buoyed by sales of women's clothing.

The High Street chain also predicted it would almost treble its full year operating profits.

Christmas trading update - Thursday

Bhs: +7.8%

QS Group: +4.3%

Body Shop: +4.0% (UK only)

Budgens: +4.0%

Boots: +2.4% (group)

Clinton Cards: +1.5%

It predicted full year operating profits for the year to March would hit at least £92.5m ($133), compared with £33.2m a year before.

Bhs was taken over by entrepreneur Philip Green in 2000 and has challenged stricken High Street giant Marks & Spencer as a store to buy stylish but affordable everyday clothing.

Top marks for new range

Like-for-like sales rose 7.8% in the six weeks to 5 January 2002, compared with a year before.

Gross margins increased by 6.3%.

The autumn 2001 range was the first full product range brought out by Bhs' new management team.

The success of Bhs womenswear was indicated by a rise of more than 20% in like-for-like sales over a 40-week period to 5 January.

Green & Green

Overall like-for-like sales rose by 4.6% for the 40 week period, while gross margin improved by 7.6% points.

Retail entrepreneur Philip Green bought Bhs from its parent company Storehouse for £200m.

Six months later he headhunted Terry Green to become Bhs chief executive, ending rumours that the former Debenhams boss would take the helm at Marks & Spencer.

Bhs it is now free of debt and claims a strong positive cash flow, reversing the picture of a year ago, when it had debts of £104m.

"All divisions have delivered improved profitability," the company said.

Philip Green said the firm's turnaround reflected its concentration on delivering "quality, stylish and aspirational merchandise at great value" to a loyal customer base and improving its stores.