Debenhams has revealed its first sales increase since Christmas ahead of its scheduled release to reassure investors after rumours of a sharp drop hit the retailer's share price.
The department store chain released figures today showing a one per cent rise in like-for-like sales over the last ten weeks following a run of negative results.
Gross transaction value for the 42 weeks to June 21st 2008 was 1.3 per cent higher than the same period last year, the retailer added.
Debenhams was due to post its interim statement on July 3rd, but rumours of declining sales sent shares tumbling to a low of 39p yesterday.
The news of a sales uplift reassured investors, and by mid afternoon shares were trading at 45.25p, up 7.1 per cent from yesterday's closing price.
Chief Executive Rob Templeman said: "In light of the tough trading environment across the whole UK retail sector, we are pleased with customer response to our new ranges and, as a result, our improving sales performance for the period.
The strength of Designers at Debenhams is particularly pleasing. We continue to take market share across our key product categories."
Own bought and in particular designer ranges continue to perform well, Debenhams said, and, as a consequence, gross margin guidance for the year as a whole of flat to plus 20 basis points is unchanged.
The cost savings target of £20 million has already been achieved and will take full effect in 2009, the retailer added.
A store improvement programme is also paying off, Debenhams said, claiming the chain continues to gain market share.
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