Department store chain Debenhams has warned it remains cautious for the rest of the financial year following a muted festive trading period.
The company, which includes both retail stores and its financial services business, announced that total sales were up by 6.3 per cent compared with Christmas last year.
However, like-for-like sales in the UK retail business were down four per cent for the same period.
Debenhams' takeover of nine Roches stores and slower clothing sales have been blamed for the lower gross margins.
Rob Templeman, chief executive officer of the department store chain, said: "Debenhams' sales performance has improved since we reported figures for the period to December 10th 2006 but the market remains challenging and we are cautious about the out-turn for the rest of this financial year."
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