Debenhams boost as it stands by principles

Updated: 20:10 EST, 16 March 2010

A focus on own brand labels at Debenhams has helped boost profit margins at Britain's second biggest department store chain.

The retailer said the move to replace concessions such as the Ultimo underwear brand had dented underlying sales but helped profitability for the six months to February 27.

Sales crept up 0.3pc despite the cold snap at the beginning of the year and were marginally ahead on the 0.1pc rise posted at the 18 week update.

Ultimo underwear brand as modelled above by Peaches Geldof

Chief executive Rob Templeman said: 'We grew market share in menswear and childrenswear against the backdrop of challenging trading conditions.'

Templeman said there had been a strong initial response to the revival last month of the Principals brand. It collapsed last year and Debenhams (down 0.80p to 71p) brought the brand from the administrators.

• The Office for National Statistics reported a spike in internet shopping. Data for 'non-store' retailing showed underlying spending rose 6.1pc between November 2009 and January 2010.