Department store Debenhams has reported positive financial results for the Christmas period due to a strong trading performance helped by its web site.

Debenhams Direct, the online business, registered growth in yearly visitor numbers and sales up 39.2 per cent and 37.4 per cent respectively.

Overall, despite posting a 3.3 per cent drop in like-for-like sales for the 12-week period since 21 October, the retailer said it enjoyed a rise in profit on last year's figures after achieving a "creditable" festive season.

"Our increase in profit is pleasing and reflects our stated intention to invest gross margin gains in strategic promotions as needed, but overall to run the business focusing on cash profit rather than just sales," said Debenhams chief executive Rob Templeman.

Debenhams has spent more than £30m revamping front- and back-office IT over the past two years, and improvements included a programme to use radio frequency identification technology to help measure in-store stock levels, as well as a data conductor to help gather sales intelligence from shops.

Some media reports have suggested that the department store delayed passing on the 2.5 per cent cut in VAT to customers, citing delays in updating store systems.