Advert boost for Debenhams

The group plans to expand its website

A £10m advertising campaign is producing benefits for sales at department store chain Debenhams, the group has said.

Following the launch in October of its first TV commercials for 10 years, like-for-like sales, excluding new store space, are now running more than 1.8% above last year.

Interim results

Pre-tax profits £73.8m (£79.4m)

Turnover £775.1m (£785.2m)

Interim dividend 4.2p (4.1p)

Comparative figures in brackets

Sales levels had been down 3.4% last autumn.

"Initial customer feedback has been very encouraging", said finance director Matthew Roberts.

Due to the lateness of Easter and the mid season sale, Debenhams declined to give exact like-for-like sales figures for the period since the half-year.

However, Mr Roberts said the underlying growth trend was above the 1.8% figure seen in January and February.

The group also reported that pre-tax profits fell to £73.8m in the six months to the end of February from £79.4m in the previous year.

Mr Roberts said Debenhams was succeeding in a harsh market place.

"We are doing well but the high street is having quite a tough time," he said.

"I think things will remain competitive - we expect to see growth but pricing will continue to be important," he added.

Debenhams shares rose 7.7% or 12p to 168p in early trading.

Analysts said the performance was a good one in the current retail environment

Trading up

Mr Roberts said increasing numbers of customers were trading up, thus boosting sales.

Those who in the past might spend about £100 on a garment, for example, are now paying up to double that for a better quality item, he said.

Debenhams is also benefiting from its exclusive ranges of designer wear, featuring names such as Jasper Conran and Calvin Klein, plus own-label brands such as Red Herring and Kickers, he said.

"We're not selling basic commodity items" said Roberts, referring to the current squeeze being felt by mass-market clothing retailers such as Marks & Spencer and Arcadia Group.