Department store Debenhams has reported first-half like-for-like sales down 0.7 per cent on last year, reflecting the challenging trading conditions in January and February.

For the 26 weeks to March 1, sales were 1.2 per cent higher than the previous year and pre-tax profit is estimated to be in line with expectations. The department store said that, despite the drop in like-for-likes, it gained market share in all its main clothing categories.

Gross margin is expected to be down year on year by some 20 basis points. This is largely owing to price realignments in some ranges in the second half of last year, particularly in menswear.

Debenhams chief executive Rob Templeman said: “Following a good performance over Christmas and the January Sale, market conditions were tough through the remainder of January and February. Nevertheless, we are pleased with the response of customers to our new season’s ranges and to the improvements we have made in quality, design and value at all price levels, as evidenced by our market share gains.

“The macroeconomic climate leads us to expect the retail environment to remain challenging and we are, therefore, focusing on driving sales, gaining market share and controlling our stocks and cost base,” he added.

Debenhams’ interim results will be announced on April 15.

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