Debenhams has happy Christmas

DEBENHAMS has reported a good performance at its Irish shops over Christmas, while Tesco’s Irish sales also appear strong.

British retailer Debenhams, which acquired nine Roches Stores outlets in Ireland in 2006 as part of a €29million takeover said these stores are now fully operational in the Debenhams trading format and are performing well.

The company could not give a future indication on the performance of its Irish stores over the Christmas period but said overall sales growth at all its stores stalled during the period.

It added that revenue at stores open at least a year, was unchanged in the 18-week period ending January 5.

Sales however rose 2.2% on that basis in the period’s final four weeks, with chief executive Rob Templeman describing the last three days before the holiday as “the strongest I’ve ever seen in 25 years of retailing.”

Mr Templeman added however that he expects the business climate to “remain difficult.”

In October last year Debenhams said turnover at the nine Roches Stores outlets it acquired here reached €221m in the year to September 1, 2007, as sales soared by 7.1%.

Tesco also said its international businesses, which includes those in Ireland traded well over the Christmas and new year period, with international sales growing by 26.9%.

In Central Europe, Tesco saw sales growth of almost 30%, while in the US, it said the early customer response to Fresh & Easy has been very encouraging.

It now has 28 stores trading in Southern California, Las Vegas and Phoenix.

Tesco said however, holiday revenue growth slowed from the previous quarter, missing analysts’ estimates.

The company’s shares fell to a four-month low after it said sales at British stores open at least a year rose 3.1%, excluding gasoline, in the six weeks ending January 5. That was below the third quarter’s 4.1% growth and the 4% median estimate of 15 analysts surveyed by Bloomberg. Total sales increased 13%.

“Undoubtedly the numbers are disappointing,” Andy Lynch of Schroder Investment Management in London, said of Tesco.

“If you look outside Britain, things are going pretty well. The problem is Britain still drives share-price value.”

Also yesterday Burberry fell 12% in London trading, the most ever.