(Adds CEO comment, analyst comment, share price)
By Sarah Young
LONDON, Jan 12 (Reuters) - Debenhams, Britain's No.2department store chain, grew sales over its Christmas tradingperiod, as customers bought more make-up, fragrances andlingerie, showing a strategy to shift away from fashion saleswas working.
British shoppers have defied predictions that Christmasspending would be down, and continued to treat themselves.Debenhams' peers Marks & Spencer and John Lewis also reported growth, in contrast to clothing retailer Next which has suffered as Britons cut back on clothesspending.
Debenhams, which is second to No.1 department store chainJohn Lewis, reported underlying sales growth of 3.5 percent inthe 18 weeks to Jan.7, beating a consensus forecast for growthof 1.2 percent.
Over the seven-week period which included Christmas,underlying reported sales were up 5 percent.
"I'm delighted that the business has delivered a goodtrading performance over peak," Chief Executive Sergio Buchertold reporters on Thursday.
Bucher, a former Amazon executive who took the helmat Debenhams in October, confirmed he would outline his plansfor the company in April, but said he was encouraged by thecompany's focus on growing beauty and gifts rather than clothes.
Shares in Debenhams were up 4.9 percent at 56.9 pence at1009 GMT. Over the last 12 months, Debenhams shares have slumped26 percent, underperforming both the FTSE midcap index of which it is part, which is up 10 percent, and bigger rivalMarks and Spencer which has lost 17 percent in the same period.
Analysts at Investec suggested the stock had further to runas Christmas trading should reassure that Debenhams was on trackto meet full-year forecasts.
"We also expect more positive sentiment towards the sharesin anticipation of the new CEO's strategy reveal in April,"Investec analyst Kate Calvert said.
Debenhams said online sales grew 13.9 percent in the 18-weekperiod, meaning that sales via the web now account for about 17percent of the overall mix.
John Lewis said on Thursday it would invest heavily in itsonline business this year after 40 percent of total sales camefrom the internet over Christmas, raising questions aboutwhether Debenhams may need to follow suit.
"We believe a major increase in capex could put thedividend, a key part of the investment case, at risk," saidLiberum analysts.
(Reporting by Sarah Young; editing by Costas Pitas and SusanThomas)
