Analysts sceptical of Debenhams' performance following trading update.

Analysts said department store Debenhams was “yet to convince” and described Thursday’s trading update as “inconclusive.”

Investec analysts said that unlike others, they expected little profit uptick from Debenhams, and reiterated a ‘sell’ rating.

However, Investec raised its price target from 66p to 88p, after the department store said it was on track to meet full-year gross profit targets.

Overall, analysts deemed the trading update to be “inconclusive” as Debenhams was still in early days of repositioning its business, and any gross margin benefit from fewer promotions would have to be reinvested.

The underperformance of womenswear was a concern, although menswear and beauty were better performing categories, it was noted.

Hargreaves Lansdown analyst Keith Bowman said Thursday’s update was reassuring, but lacking in inspiration.

He said in a note that analyst consensus on the stock pointed to a hold, and described the retailer as “yet to convince."

“The middle ground it occupies between discount and high end clothing retailers continues to be challenging, whilst the group remains firmly in the shadow of arch rival John Lewis,” Bowman concluded.

Shares in Debenhams rose 0.61% to 90.85p on Thursday at 0953 BST.