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Department store chain Debenhams reported annual profits down by 44% at £59m amid what it called an "uncertain" trading environment.

The figure included £36.2m of exceptional charges, in part relating to store closures and the closure of its Northampton distribution centre.

Same-store sales in physical outlets were flat, but mobile sales are growing fast and were up by 57%.

Chief executive Sergio Bucher said the company was "making progress".

Mr Bucher, who took over a year ago, said in the statement: "We are making good progress with implementing our new strategy, Debenhams Redesigned, and are encouraged by the results from our initial trials, as well as the number of exciting new partners who want to work with us."

But he warned: "The environment remains uncertain and we face tough comparatives over the key Christmas weeks."

Sales of beauty products, accessories and food and drink helped to offset what was a weak clothing market, Debenhams said.

Food sales were one of the better performers, rising by 8%.

The chain has a cafe or restaurant in most stores, and sells a range of gift-type food, such as prosecco mixers, chocolates and chutneys.

The company said at the time of its interim results, in April, that it would close 11 warehouses and put up to 10 stores under review.

The company is also slimming down its in-house brands.

Mr Bucher said the "early signs from our activity to date confirm that we are moving in the right direction towards a successful and profitable future for Debenhams".

George Salmon, equity analyst at Hargreaves Lansdown, said that, as a former Amazon executive, Mr Bucher was well qualified to guide Debenhams: "The obvious solution to the problem of declining high street footfall is to steer the ship towards 21st-Century sales methods."

He points out that many of the stores have long leases, so Debenhams is tied to physical outlets and has "little more flexibility than a supertanker just now".

The company is making the best of this. As well as putting in place restaurants, it has opened gyms in some of the excess space in store.