Debenhams Share News (DEB)

(ShareCast News) - Debenhams reported better than expected Christmas trading, with like-for-like sales at the department store group strengthening into January and profit margins remaining in line with targets.Group LFL sales in the 18 weeks to 7 January, which represents the first quarter and a half of its financial year, rose 3.5% at the reported level, with the latter seven weeks of the period seeing LFL sales increase 5.0%, or 1.7% in constant currency.As ex-Amazon man Sergio Bucher beds down as chief executive, online sales have already become a crucial element, up 13.9% across the whole quarter and up 17.0% over the Christmas period as an increasing amount of people buy their festive gifts from the comfort of their sofa.Debenhams cut its level of discounts with a 2% improvement in full price sell-through and reduced stocks levels 7% by cutting the number of clothing options, which will mean gross margin remained within the full year guidance of -25 basis points to +25bps."I'm pleased with the performance we have achieved in the key trading weeks of Black Friday and over the Christmas peak, given the challenges in the broader environment and the strong performance last year," Bucher said."The resilience of Debenhams' differentiated offer is beginning to show through, with the growth we have driven in beauty and gifting. It's encouraging to see that the service improvements we have made helped us to deliver strong multi-channel sales growth."Debenhams maintained market share in a competitive clothing market and Bucher said there was "a lot more we can do to build from this base" and promised to elucidate on his plans for the group alongside interim results in April.