Debenhams margins better by design
DEBENHAMS has increased profit margins by selling more of its lucrative own-label products, it is expected to reveal this week.
Its profit before tax for the first half of this financial year will be £128 million, compared with £123.6 million the year before, analysts forecast. The rise comes despite falling like-for-like sales at the company.
Its Designers at Debenhams range is responsible for the profits rise. In February it launched Edition, collections by a range of continually changing designers. It has also launched J Jeans by Jasper Conran for men this spring.
The department store will return a dividend to its shareholders for the first time since October 2008, it is expected to announce on Thursday. The likely 1p-per-share interim payout reflects the store group’s strong cash position due to tight financial management and a £323 million fundraising in 2009.
Debenhams joined the stockmarket in 2006 laden with £1.3 billion debt. It has since almost halved this. It expanded overseas in November 2009 through the acquisition of Danish department store Magasin du Nord.