Debenhams sales drop on discounts

Debenhams Plc, the second-largest UK department-store company, said a sales drop slowed on post-Christmas discounts and demand for exclusive fashions designed by the likes of Julien Macdonald.

Revenue fell 3.5 percent at stores open at least a year in the first half's initial 18 weeks, which ended Jan 3, the London-based company said yesterday in a statement.

That was better than the 4.2 percent slide in the period's first six weeks. The gross margin, a profitability gauge, was unchanged, while pretax earnings rose and debt fell "significantly" the retailer said.