House of Fraser’s Christmas trading update has revealed record sales amid a troubled quarter.
In the six weeks to December 31 the department store chain posted a 2.7 per cent rise in like-for-like sales alongside a gross margin growth of one per cent.
According to the retailer, which announced a five-year turnaround plan in December, the two weeks leading to New Year‘s Eve “delivered record sales figures”.
In November, the company‘s chief executive Nigel Oddy revealed he would be leaving the company after just two years in the role.
It is speculated that there are internal struggles between the company‘s management and its owner Sanpower, which acquired the retailer in 2014.
The parent company promised to invest £75 million in the 167-year-old retailer, but the money is yet to be seen.
This latest financial result is a welcome return to profit after a tough period for the brand.
“We are very pleased to report a solid overall performance this Christmas, driven in part by very strong online demand over Black Friday and good Boxing Day week sales,” Oddy said.
“Our recent performance is evidence that our multichannel proposition, combined with the huge breadth of products and brands we provide, is working well for our customers.”
Chairman Frank Slevin added: “We commenced laying the foundations for the transformation of the business in 2016 in anticipation of a challenging retail environment, and as we look forward to 2017 and beyond we must continue to adapt as the retail sector evolves.
“With this strong trading performance, we remain confident that we will continue to deliver a compelling proposition for our customers.”