Debs and ASOS set to buck the trend

SHAREHOLDERS in Debenhams and ASOS are holding their breath that they will not join the Christmas losers list next week with the City expecting Debenhams to have avoided disaster, writes Laura Chesters.

Analysts argued the underpressure department store’s efforts to reduce excess stock and cutback on its seemingly endless discounting may have paid-off over the Christmas period. John Stevenson, analyst at Peel Hunt, said: ‘After last year’s debacle, Debenhams has made significant operational changes for Christmas. It should have been better placed to navigate the tough apparel season, which has so far seen profit warnings from N Brown, SuperGroup and Boohoo.’

He predicts strong online sales to have saved the day with revenues likely to be down on last year with sales from stores open at least a year coming in flat.

It will be scrutinised in comparison to rival House of Fraser, which revealed an 8pc jump in sales last week for the key festive period.

Fashion website ASOS is likely to meet City expectations unlike smaller upstart Boohoo.com. Its sales for the four months to December soared 24pc but were well below the 40pc forecast by the market and its shares crashed more than 40pc.

Yesterday it emerged some of Boohoo’s management took advantage of its weaker share price and bought shares. Debenhams and ASOS’s updates on Tuesday will be joined by Greggs.