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.

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