Department store group Debenhams said it expected its profits for the full year to August 28 would be 20 per cent up on last year’s figures.


The profits, expected to be in the region of £150 million, were made despite the fact that like-for-like sales for the 52 weeks were flat compared with 2009’s performance.


In fact, the store group pointed out that like-for-like sales would have actually dropped if it had not been for a recovery in the last 10 weeks of the year.


It admitted that like-for-like sales were impacted throughout the year by the strategy of improving gross margins by increasing the penetration of own-bought trading space. This required the conversion of more than 530,000 sq ft of trading space from concession to own bought in the fourth quarter of 2009.


Debenhams also revealed that its online sales had increased by 88.4 per cent compared with 2009.


As chief executive Rob Templeman said in the group’s full-year trading update: "We have said throughout 2010 that this would be a year of change for Debenhams and a year when the structural shift towards own bought merchandise means that we will judge our performance on profit improvement rather than sales.


“"Our profit performance has been pleasing but we believe it is correct to remain cautious about the level of consumer confidence going forward.”