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Debenhams' focus on gifts helps it emerge as a Christmas winner

* Underlying sales in 19 wks up 1.9 pct, f/cast up 0.3 pct

* Shares (Berlin: DI6.BE - news) soar 14 pct (Adds CEO comment, analyst comment, share price)

By Sarah Young

LONDON, Jan 12 (Reuters) - British department store chain Debenhams (Other OTC: DBHSF - news) outshone rivals Marks & Spencer (Other OTC: MAKSF - news) and Next (Other OTC: NXGPF - news) over Christmas, helped by clever stock management and demand for perfumes and lingerie.

Shares in Britain's No.2 department store group, soared in early Tuesday trading, after it reported underlying sales for the 19 weeks to Jan. 9 rose 1.9 percent, beating analyst expectations for an increase of 0.3 percent.

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Debenhams said its plan to cut stocks of coats and jackets paid off during a warmer than usual autumn, which Next and M&S blamed for disappointing sales.

Its strategy to focus more on beauty products, accessories, homeware, handbags and shoes also made it more resilient to the effect of unpredictable weather on clothing sales, its chief executive said.

"This is not a one-off, this is continued reinforcement and delivery of results against a strategy that we've laid out for a number of years," Michael Sharp told reporters.

Sharp has said he plans to leave at some point this year, having held the top job since 2011. He has recently shed the company's reliance on discounting and built up its online offering, shortening delivery times to boost sales.

"The departing chief executive may today allow himself a pat on the back," Hargreaves Lansdown (LSE: HL.L - news) analyst Keith Bowman said. "The group's strategic direction appears to be generating progress, with its reported performance contrasting with that at both Next and M&S."

Debenhams' performance stood out in a tough Christmas for British retail spending as a whole, which recorded its weakest quarterly growth in more than a year as stores competed to offer discounts.

But in the run-up to Christmas, Debenhams came in behind Britain's biggest department store chain, John Lewis, which grew sales by 5.1 percent, against Debenhams growth of 1.8 percent for the seven weeks to Jan. 9.

Shares in Debenhams climbed 14 percent to 75 pence at 0912 GMT, returning to levels seen in mid-December. The stock had before this morning's update lost 23 percent since it last reported in October.

Amongst Debenhams biggest sellers over Christmas were fragrances such as Mark Jacobs's Decadence, Gucci Bamboo and Eau Sauvage by Dior, plus Lego and Star Wars toys, lingerie, and a new womenswear range, Nine by Savannah Miller.

Debenhams said the outcome over the period, the first of its financial year, put it on track to deliver full-year profit in line with market expectations. (Editing by Mark Potter)