The department store group, in which Merrill Lynch Private Equity recently sold its stake, issues interim figures on Tuesday.

Profits are likely to be around£92 million, notes JP Morgan. The broker said interest was likely to focus on current trading, the retailer’s balance sheet position and “any new developments on product, pricing, store environment or brand development”.

JP Morgan is underweight on Debenhams and said: “We anticipate further gross margin pressure for clothing retailers and would prefer to wait for a better macro outlook to become more positive on the stock.”

Shore Capital, advising hold, said Debenhams was “one of the more risky stocks to call the bottom on”. Shore’s John Stevenson said he was impressed by merchandising and range improvements, but concerned about historical underinvestment in stores.

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