Market watch: Debenhams to reveal result of own-brand push

Consensus market forecasts for the high street stalwart point to underlying profits of about 150 million for the year to 28 August.

The group converted large areas of its outlets from concessions to own-brand ranges at the end of last year and has been keeping a tight control on stock to improve margins.

It has also looked to drive online sales, with in-store kiosks introduced to help make shopping more convenient for customers.

The company has shrugged off concerns over its recent 25 per cent off sale at the start of the autumn/winter season, predicting a 2 per cent rise in like-for-like (LFL) sales in the final ten weeks of the financial year.

Nick Batram, analyst at KBC Peel Hunt, said: "Delivering an accelerating LFL sales performance into peak trading, coupled with confidence on achieved gross margins, we believe Debenhams will stand out from its quoted peers over the coming six months."

Leisure group Whitbread has seen a pick-up in demand from business customers at its hotel chain Premier Inn recently and will hope this translates into a boost in profits in its half-year results on Tuesday.

Special offers also boosted occupancy at weekends and holiday periods as Premier posted a 10.9 per cent rise in like-for-like sales for the quarter to 19 August, slightly ahead of the 10.5 per cent growth rate seen in June.

The hotel chain, which generates two-thirds of Whitbread's profits, has benefited from increased marketing, including an advertising campaign fronted by comedian Lenny Henry.

Wyn Ellis, analyst at Numis Securities, said he expected another "confident update" from the group, driven by a strong performance at Premier.He added the hotel's "Premier Offers" programme, advanced bookings at discount rates, had been "very successful".

Whitbread also reported further strong trading at its coffee shop chain Costa as new drinks and food offers helped quarterly like-for-like sales lift 8.1 per cent - similar to the rate seen in June.

In the restaurant division, which includes the brands Beefeater and Brewers Fayre, like-for-like sales for the most recent quarter were up 4.3 per cent, against a 3.6 per cent rise in the first three months of the company's financial year.

As of September, Whitbread, which employs 35,000 people, had opened nine new hotels with a total of 795 rooms, and 98 Costa stores.

The results will be the last for chief executive Alan Parker, who is due to step down in November, and will be replaced by easyJet boss Andy Harrison.

The market is hoping for more details of a turnaround plan and refinancing solution from embattled nightclub operator Luminar when it reports interims on Thursday.

The owner of nightclub chains Liquid and Oceana said last month that sales slumped by a fifth over the six months to 26 August as hard-pressed clubbers stayed at home.

It has also been locked in talks with lenders over a refinancing of its debt, which stood at 92.6m in February.

Chief executive Simon Douglas has already sketched out plans to revive the group. As well as a group-wide crackdown on costs, he wants to improve the music, drinks and customer service standards on offer at Luminar's clubs, making them more "fashionable and relevant" for customers.

The former HMV and Zavvi boss is also looking for an enhanced online presence. Half-year profits will reflect the sales woe seen over the summer.

Bellway, one of the best-performing housebuilding firms during the recession, is expected to show a return to more normal property market conditions in its full-year results on Tuesday.

The Newcastle-based firm, which is the only major housebuilder paying a dividend to shareholders, previously said it was on track to achieve 10 per cent volume growth in the 2010/11 financial year.

Mark Hughes, an analyst at Panmure Gordon, said: "We view Bellway as a quality company with a good track record and see its management team as a safe pair of hands, particularly in uncertain times."

Bellway is expected to report pre-tax profits of 42m in the year to 31 July, up from 29.8m a year earlier.