Debenhams says it remains cautious about prospects for 2008

Debenhams reported a 2.2% rise in like-for-like sales for the four weeks to 5 January, ahead of expectations.

But Blacks Leisure issued a profit warning after it said sales at its boardwear brands, Freespirit and O'Neill, had fallen by nearly 11%.

Computer games retailer Game Group reported strong sales growth, but said profit margins were down.

UK retailers' Christmas trading updates have come under intense scrutiny this year amid worries that shoppers are cutting back on their spending.

Analysts say rising mortgage payments and energy bills have hit shoppers' pockets.

'Fragile' confidence

The increase in Debenhams' Christmas like-for-like sales - which strip out the impact of new stores - helped to offset weaker trading in the autumn.

However, the firm - which operates 136 department stores in the UK and Ireland - said like-for-like sales in the 18 weeks to 5 January were flat.

It added that consumer confidence was "fragile" and as a result it was cautious about its prospects.

Blacks Leisure reported a 2.8% rise in like-for-like sales for the six weeks to 12 January, but it warned that full-year operating profits were set to come in below market estimates, because of weak sales of its boardwear brands.

While the retailer said its main Blacks and Millets brands had done well, with Blacks seeing like-for-like sales growth of 5.4% and Millets rising 7.8%, its boardwear brands had seen falling sales for most of the second half of the year.

Computer games

Game Group said it had delivered an "outstanding" performance with group like-for-like sales up 31.9% over the six weeks to 12 January.

Top selling games included FIFA 2008, Call of Duty 4 and The Simpsons Game.

The firm said its annual profit for the year to 31 January would be at least �73m, against previous guidance of �70m.

However, Game Group said its profit margins would be lower than a year ago because of lower margins from console sales and from Gamestation, the retail chain it bought last year.