Debenhams shares rose 2.5p to 44.75p, a two-day high in early trading. Its stock had fallen around a third in value in the past month on fears it might struggle to pay off its GBP1bn of debt.

"In light of the tough trading environment across the whole UK retail sector, we are pleased with customer response to our new ranges and, as a result, our improving sales performance for the period, " chief executive Rob Templeman said.

Templeman said Debenhams was taking market share from rivals and that net debt at the end of its financial year would be in line with analysts' expectations. He forecast further market share gains over the summer.

Debenhams said like-for-like sales rose 1per cent in the 10 weeks to June 21, a turnaround from the previous 32 weeks when like-for-like sales fell 1per cent. Gross margin guidance for the year was left unchanged.

"The numbers speak for themselves, " Templeman said, adding the company had brought forward its trading update because of inaccurate rumours, one of which had suggested the group's like-for-like sales were down 9per cent.

Templeman said May had been a good month, particularly the first two weeks, "when the sun came out" and released pent-up demand for summer fashions.

His comments back up official data which showed retail sales saw their biggest month-on-month rise in May since 1986.