The retailer said Sharp, who has worked for Debenhams or its predecessor, the Burton Group, for 30 years and became CEO in September 2011, had always intended to serve a five year term.

"That's always been my plan and I'm sticking to my plan," Sharp told reporters.

"I hope being transparent about my intentions will stop recent speculation becoming a distraction, allowing me and the Debenhams team to focus on delivering our strategy and the important Christmas trading period," he said.

The five year plan had not been made public.

The statement on Sharp's future follows media reports that several of Debenhams' biggest investors were unhappy with the retailer's performance and had pushed for a board shake-up.

Shares in Debenhams rose up to 4.6 percent on Thursday after the firm also posted 2014-15 profit in line with expectations and reported a good start to its new year.

Sharp, who has a 12 month notice period, will help identify his successor, with internal and external candidates considered.

Analysts cited trading director Suzanne Harlow as the leading internal candidate.

"If Chairman Nigel Northridge means what he says - 'The board are confident we have a clear and effective strategy' - then ... Harlow will be in with a good chance, but if Debenhams decide to pursue a different strategy then an outsider will probably be brought in," said independent retail analyst Nick Bubb.

Under Sharp's leadership, Debenhams cut back on promotions, added concessions in under-used store space, grew its online business and expanded internationally.

However, the firm has seen little sales and profit growth in recent years, while its shares, though up a third over the last year, are well down on their November 2012 peak of 124 pence.

The stock was up 3.4 pence at 84.3 pence at 0848 GMT, valuing the business at 1.04 billion pounds.

Debenhams, which trails John Lewis [JLP.UL] by annual sales, made an underlying pretax profit of 113.5 million pounds in the year to Aug. 29, in line with forecasts. That was up 7.3 percent on the previous year but well down on the 139 million pounds posted for 2012-13.

"We have had an encouraging start to the year, with strong new product launches which have been well received by our customers," added Sharp.

(Editing by Kate Holton and Mark Potter)

By James Davey