DEPARTMENT store chain Debenhams today hailed the success of its "Designers at Debenhams" range in helping to deliver a 14% rise in annual profits.
Sales of the range, which includes items by designers such as Jeff Banks, rose 11% and pushed pre-tax profits for the year to August 29 to £120.8 million.
Same-store sales in the seven weeks to October 17 improved 0.6% but the firm said consumer demand remained "hard to predict".
Chief executive Rob Templeman added that the largest space move in Debenhams’ history was now complete after it converted large areas of the estate from concessions to own-brand ranges.
He said: "The store space moves have now been completed and early indications are that customers are finding favour with the new ranges and departments."
The portfolio will be boosted in February by the return of the Principles brand, which disappeared from the high street earlier this year following the administration of parent company Mosaic Fashions.
Debenhams purchased the rights to the brand name and intends to revive it under the direction of designer Ben de Lisi.
The Principles by Ben de Lisi collection will feature 106 pieces of weekend, smart day, occasion and eveningwear.
Own-bought products accounted for 76% of sales in the financial year, up from 71.8% last year following the introduction of more Debenhams ranges.
The company also increased its portfolio to 144 department stores in the year, following the addition of shops at Livingston, Westfield in London, Wrexham, Great Yarmouth and Bury St Edmunds.
The new store pipeline for 2010 will see six new outlets, including three of its smaller Desire by Debenham stores.
The company also said it had reduced net debt by £403.7 million to £590.3 million, helped by a share issue this summer.
Keith Bowman, an analyst at Hargreaves Lansdown stockbrokers, said the company had moved on from the over-indebted business model which private equity firms saddled it with a few years ago.
He added: "Debenhams has climbed a very steep hill, with management deserving considerable credit.
"A difficult balance between addressing group financials and investing in the future is being achieved, with management being rewarded with a near trebling in the share price over the last year."
