Britain’s second largest retailer remains bullish as profit forecasts exceed expectations.

Debenhams announced yesterday that its yearly pre-tax profit would likely rise by 20m per cent. The increase comes on the back of designer range performance and online sales.

The company predicted that it would hit the £150 million profit mark, with the recent trends of store expansion and discounting helping to fuel coffers by £3 million over what analysts had previously forecast. However, at stores that had been open to the public for at least one year, overall sales were flat compared with the previous 12 months.

Despite the unsteady consumer environment, which has seen the public sector suffer widespread job cuts, material costs rise and austerity measures hinder spending, Debenhams has been able to produce the upbeat estimate which covers the year until 28 August. Deputy chief executive for Debenhams, Michael Sharp, said the store was well placed to cope with what has been a challenging storm. Mr Sharp said the impending VAT rise was an obvious concern for all retailers, but that his company’s commitment to offering the right products at right prices had served them well in times of financial hardship. Mr Sharp also acknowledged that online sales had seen a significant rise, with many customers trending towards the time and money saving alternative.

With 160 stores across Britain and Ireland, Debenhams is the UK’s second largest sales retailer behind John Lewis, and also features stores in Denmark and over 60 franchised outlets overseas.

Britain’s second largest retailer remains bullish as profit forecasts exceed expectations.

Debenhams announced yesterday that its yearly pre-tax profit would likely rise by 20m per cent. The increase comes on the back of designer range performance and online sales.

The company predicted that it would hit the £150 million profit mark, with the recent trends of store expansion and discounting helping to fuel coffers by £3 million over what analysts had previously forecast. However, at stores that had been open to the public for at least one year, overall sales were flat compared with the previous 12 months.

Despite the unsteady consumer environment, which has seen the public sector suffer widespread job cuts, material costs rise and austerity measures hinder spending, Debenhams has been able to produce the upbeat estimate which covers the year until 28 August. Deputy chief executive for Debenhams, Michael Sharp, said the store was well placed to cope with what has been a challenging storm. Mr Sharp said the impending VAT rise was an obvious concern for all retailers, but that his company’s commitment to offering the right products at right prices had served them well in times of financial hardship. Mr Sharp also acknowledged that online sales had seen a significant rise, with many customers trending towards the time and money saving alternative.

With 160 stores across Britain and Ireland, Debenhams is the UK’s second largest sales retailer behind John Lewis, and also features stores in Denmark and over 60 franchised outlets overseas.

The discount fashion chain store that became a success story on high street has had its bubble burst.

Primark, whose expansion drive has placed them on many British shopping lists, has reported slow summer sales as consumer confidence took a battering.

Shares in Associated British Foods (AB Foods), the firm’s parent group, fell 1.5 per cent as the news became known of marked slowdown in sales growth.

While full-year budgets and profit earnings for the retailer are still on track to beat forecasts, Primark warned that tough times lie ahead as increased living costs and the impending VAT changes would spell trouble times in 2011. The fashion industry is now bracing itself for the next round of sales updates from fellow high street staples Next and Debenhams, due out next week, with analysts anticipating that similar grim outlooks will be commonplace.

The Primark chain, which consists of 204 retail outlets, makes up one-third of the group’s profit at AB Foods. Its like-for-like sales slowed in the three months till mid-September by around 4 per cent, meaning the year now sits at an increase of 6 per cent following the 8 per cent first half performance.

John Bason, AB Foods finance director, said that the previous fourth quarter sales, made longer by an Indian summer in 2009, meant that the last quarter showed a decline of closer to ten per cent. Bason added that Primark would remain cautious in the way it handled the outlook and the UK consumer.

The end of an era in fashion as Kate Moss leaves the leading high street retailer.

Supermodel Kate Moss has designed her last regular range for the fashion giant run by Sir Philip Green, ending a successful four-year partnership.

Topshop has confirmed that the 14th collection from Moss, the upcoming autumn/winter collection, will be her swansong, although she may feature in a number of one-off designs in the future according to parent company Arcadia, who also owns fellow fashion outlets Dorothy Perkins, Miss Selfridge and Bhs.

Industry insiders claim that the separation has been amicable, highlighted by the opening of the New York flagship store last April when Moss and Sir Philip appeared side by side. It is understood that the considerable amount of time required to put a collection together was the main reason for the departure of Moss, who has chosen to concentrate on other opportunities. Only recently, Ms Moss appeared on the cover of British Vogue magazine, marking the incredible 30th time in her career she has graced the iconic magazine.

The four-year collaboration with Topshop, considered to be a lengthy relationship in the fashion industry, was believed to have netted Moss around £3 million per year. She was snapped up by Sir Philip in 2005 after the tabloid scandal which featured photos of her snorting cocaine, when many thought her career was over. Her last collection will be released in October.

Fashion label Biba is returning to the roots of High Street style.

In a move that evokes images of iconic sixties glamour, the retailer has announced that renowned party girl Daisy Lowe will become the new face of the chain.

The cheap, trendy clothing offered by Biba has won favour with many leading celebrities and has become associated with the style of the swinging sixties, epitomised by Twiggy and followed by the likes of Marianne Faithfull and Bianca Jagger.

Biba attempted a high-end re-launch in 2006 with minimal success, leading the group to go into administration two years later. Now, the re-launch is on again, with proud devotee Lowe at the forefront. Initial campaign images have revealed the smouldering Lowe, 21, play on the sixties roots of the brand in a leopard-print coat and kohl-rimmed eyes. The model, who has been seen at several summer festivals sporting the Biba range, said she was honoured to be involved with a label that she has worn since a teenager. Lowe claimed that Biba was one of the first names that she became aware of when she entered the world of modelling, and she leapt at the opportunity to be part of the new campaign.

The new range from Biba features denim and jewellery in addition to favourites such as faux fur and marabou jackets and a series of limited-edition party dresses. The label will be exclusive to House of Fraser, who said that the confident, fashionable and glamorous Lowe was the perfect representation of the brand.