 Debenhams has seen strong sales and a profitable term, and is to resume dividend payments to shareholders.According to the BBC, pre-tax profits for the six months to 26 February were £125.3m, up almost 10% from the £114.5m same period last
year.
Debenhams added that the price of commodities such as cotton could be about to fall, helping both consumers and retailers.
Th e results come on the back of a series of gloomy outlooks from a number of leading retailers.
Next and Mothercare, for example, have delivered cautious statements recently, while earlier this week, the British Retail Consortium reported its largest monthly fall in sales since records began in 1996.
Debenhams also announced that its chief executive, Rob Templeman, would retire in September.
He will be replaced by the firm's current deputy chief executive, Michael Sharp.
Half-year revenues at the department store rose slightly to £1.2bn despite what the company called "difficult" trading conditions.
However, Mr Templeman said there were "encouraging signs that commodity prices such as cotton may fall, which could be positive for both consumers and retailers in terms of pricing".
Analysts said the company was benefiting from having paid down previously high levels of debt.
Keith Bowman, equity analyst at Hargreaves Lansdown, said: "The group's debt-laden private equity past continues to be consigned to the history books, with the resumption of the dividend payment potentially marking a new chapter.
"A focus on profit margins as opposed to sales remains central to management strategy, while the willingness of its banks to refinance its
previously stretched financial position has also played its part via
reduced financing costs."
Image: Debenhams SS11
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