Debenhams reports profits in line with forecasts

British department store chain and takeover target Debenhams has reported year profits and current sales in line with forecasts.

Debenhams said its pre-tax profits rose 9.6 % excluding exceptional items to £168.4m (€239m) in the period to August 30, compared with a forecast range of £163-170m (€232-242m).

In the six weeks to October 11 like-for-like sales were up 2.7% and profit margins rose, outperforming its rivals Marks & Spencer and Next.

Debenhams is recommending a £1.66bn (€2.36bn) share offer from Baroness Retail, led by private equity groups CVC Capital and Texas Pacific.