The department store group said a fall in commodity costs could see shop prices fall Debenhams has announced a rise in half-year profits and says it will resume dividend payments to shareholders.
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.
The department store group also said that its chief executive, Rob Templeman, would retire in September.
He will be replaced by the firm’s current deputy chief executive, Michael Sharp.
Debenhams’ positive results contrast with the more gloomy outlook of a number of leading retailers.
Next, Mothercare, HMV and Dixons Retail, which owns Currys and PC World, have all delivered cautious statements in recently, while earlier this week, the British Retail Consortium reported its largest monthly fall in sales since records began in 1996.
Half-year revenues at Debenhams 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”.
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