Debenhams is to create 1,000 new jobs after revealing a 14 per cent rise in profits.
Interim pre-tax profits at the group increased to £92.1 million sterling, from £80.8 million. Sales grew by 8.1 per cent to £937.9 million from £867.4 million.
Debenhams plans to open four stores in the next financial year - in Basingstoke, Redditch, East Kilbride and Inverness. The group also plans to increase its international presence after signing a franchise agreement covering the Czech Republic.
The British store openings were expected to add 2 per cent to total sales next year and a further boost should come in home shopping.
Analysts had voiced fears that Debenhams could buckle under the challenge from a resurgent Marks & Spencer.
But chief executive Ms Belinda Earl said sales remained strong, with like-for-like growth holding steady at around 5 per cent in the past six weeks.
She said: "It is a competitive marketplace, but we welcome competition and we are very happy with where we are trading at the moment".
PA