DEPARTMENT store group Debenhams hailed the popularity of its designer-led strategy after achieving further growth in sales and profits.

The retailer, which was acquired by a consortium of private equity groups for £1.7bn in December 2003, said a 2.7 per cent rise in sales in the 13 weeks to February 26 helped it to increase its market share.

Amid signs of tough trading conditions, Debenhams said all its product categories performed well, with the Designers at Debenhams brand driving growth.

It was also helped by initiatives to improve its supply chain, as the company was better able to keep shelves stocked and introduce newer products.

Overall, turnover lifted 5.7 per cent to £594.8m, down on the eight per cent improvement seen in the previous quarter. Trading profits, which have been boosted by the one-off impact of property deals, rose 79.4 per cent to £95.1m.

Debenhams chief executive Rob Templeman said: "Our strategy of designer-based product development, space expansion, store investment and supply chain initiatives is delivering strong growth in sales and profit.

"All of this reinforces the confidence we have in the trading and growth potential of Debenhams as we continue to increase market share."

The group recently took its number of branches to 116 after acquiring eight stores in the South from the administrators of collapsed chain Allders.