Debenhams shares soar following profit rise

<p>Shares in Debenhams are up on the London Stock Exchange following a profit rise.</p>

Shares in Debenhams have soared on the London Stock Exchange this morning (October 25th) following the retailer's announcement it has enjoyed a profit rise.

According to the renowned department store, pre-tax profits for the year to September 1st were up by 4.2 per cent to £158.3 million despite "challenging trading conditions".

Like-for-like sales – excluding the effects of new store openings – were also higher by 2.3 per cent.

Debenhams said the warm, dry autumn and cold, wet spring resulted in seasonal product demand suffering, with clothing bearing most of the brunt.

Chief executive Michael Sharp was realistic about matters, saying he does not anticipate the economic climate to change much in 2013.

Nevertheless, the company is opening 17 more stores in the coming five years, while 18 of its shops have been modernised over the last 12 months.

At 08:50 BST this morning, Debenhams made 4.4 per cent gains on the London Stock Exchange to 113.80p per share.

Find the latest spread betting strategies for the FTSE 100 at City Index.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.