DEB Debenhams

 

TIDMDEB 
 
RNS Number : 9461O 
Debenhams plc 
17 March 2009 
 

17 March 2009 
 
 
DEBENHAMS plc 
FIRST HALF TRADING UPDATE 
 
 
  *  Sales, gross margin and profits increase 
  *  Market share gains in all major categories 
  *  Net debt lower than last year 
 
 
 
Debenhams plc, the leading department stores group, today releases its trading 
update for the 26 weeks ended 28 February 2009. 
 
 
Gross transaction value for the 26 weeks ended 28 February 2009 was 0.3% higher 
than the prior year despite challenging trading conditions across the retail 
sector.  Debenhams has continued to take market share from its competitors in 
all major product categories, a positive trend which has now prevailed for 18 
months.  Excluding VAT, like-for-like sales for the period were 3.6% lower than 
last year. 
 
 
Own bought ranges and particularly Designers at Debenhams ranges have delivered 
good sales growth and further progress has been made in our strategy to increase 
own bought participation. The strength of own bought sales has contributed to a 
positive movement in gross margin and we expect gross margin for the first half 
to be higher than last year. 
 
 
The combined impact of higher gross transaction value and gross margin with the 
continuing tight management of costs and stocks alongside management's focus on 
the levers that drive cash margin will result in first half profit before tax 
and EBITDA being ahead of the previous year. 
 
 
A strong focus on stock management has also resulted in terminal stocks being at 
a historically low level at the end of the first half. Our strategy of improving 
the consumer experience through the rationalisation of some of our ranges has 
also led to a significant reduction in stock densities. 
 
 
Debenhams continues to generate strong cash flows and net debt at the end of the 
half was lower than the prior year. 
 
 
Since the end of the first half, we have taken the opportunity to acquire a 
quantity of stock and fixtures and fittings from the administrators of 
Principles as well as a licence to trade the brand. This will ensure continuity 
of supply to our business and accords with our intention to increase the own 
bought sales mix.  Whilst the exact quantity of stock acquired is currently 
being finalised, we believe that this purchase will be beneficial for our 
business. 
 
 
Commenting on the first half, Rob Templeman, CEO of Debenhams, said: 
 
 
"We are pleased with our performance during the first half of the year given the 
extremely difficult trading conditions experienced across the high street. We 
have continued to grow our top line and to take market share as consumers 
increasingly recognise the great value in terms of quality, price and design 
that our products and especially Designers at Debenhams deliver. 
 
 
"We have said previously that our main focus is on cash profit rather than just 
sales and our increase in profits during the first half despite the environment 
is testament to this aim and to the close management of resources throughout the 
business. 
 
 
"Visibility for the second half remains poor and we will continue to run 
Debenhams in the expectation that the trading environment will remain 
challenging." 
 
 
 
 
A conference call will be held today at 8:30am on +44 (0) 20 8609 1270.  A 
replay of the call will be available for seven days on +44 (0) 20 8609 0289, PIN 
257596#. 
 
 
Debenhams' interim results will be announced on 23 April 2009.  Please note this 
revised date. 
 
 
Enquiries 
 
 
Debenhams plc 
Rob Templeman, Chief Executive 
Chris Woodhouse, Finance Director    020 7408 3302 
Lisa Williams, Investor Relations 
   020 7408 3304 
 
 
Financial Dynamics 
Jonathon Brill 
   020 7269 7170 
Billy Clegg 
     020 7269 7157 
Caroline Stewart 
    020 7269 7227 
 
 
 
 
High resolution images are available for media to view and download free of 
charge from www.prshots.com/Debenhams. 
 
 
Statements made in this announcement that look forward in time or that express 
management's beliefs, expectations or estimates regarding future occurrences and 
prospects are "forward-looking statements" within the meaning of the United 
States federal securities laws. These forward-looking statements reflect 
Debenhams' current expectations concerning future events and actual results may 
differ materially from current expectations or historical results. Any such 
forward-looking statements are subject to various risks and uncertainties, 
including: Debenhams' ability to accurately predict customer preferences and 
demands; the effectiveness of Debenhams' brand awareness and marketing 
programmes; the occurrence of weak sales during peak selling seasons or extreme 
or unseasonal weather conditions; difficult market conditions and fragile 
consumer confidence; competitive factors in the highly competitive retail 
industry; Debenhams' ability to successfully implement its new store rollout and 
department store refurbishment/modernization strategy; Debenhams' ability to 
maintain its relationships with certain designers and its significant concession 
partner; and currency fluctuations and currency risk. 
*    *    * 
Additional risk factors that you may want to consider are: Debenhams' ability to 
retain key management and personnel; disruptions or other adverse events 
affecting Debenhams' relationship with its major suppliers or its store card 
provider; factors outside Debenhams' control, such as changes in the financial 
or equity markets, adverse economic conditions or a downturn in the retail 
industry, or damage or interruptions due to operational disruption, natural 
disaster, war or terrorist activity; and work stoppages; slowdowns or strikes. 
 
 
Notes to Editors 
 
 
Debenhams is a leading department stores group with a strong presence in key 
product categories including Womenswear, Menswear, Childrenswear, Home and 
Health and Beauty. 
 
 
Debenhams has a total of 144 department stores in the UK and the Republic of 
Ireland and 10 Desire by Debenhams stores, which is a small store concept 
featuring a mix of womenswear, accessories, lingerie, cosmetics and 
childrenswear. Debenhams has 49 international franchise stores in 18 countries 
and an online store, www.debenhams.com, through which much of the Debenhams 
range is available. 
 
 
Debenhams is the second largest department store chain in the UK. 
 
 
Designers at Debenhams include Ted Baker, Jasper Conran, Erickson Beamon, Pip 
Hackett, Betty Jackson, Ben de Lisi, Julien Macdonald, Melissa Odabash, Jane 
Packer, Pearce Fionda, Janet Reger, John Rocha and Matthew Williamson 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 TSTGGGMFNVGGLZM 
 

Debenhams (LSE:DEB)
Graphique Historique de l'Action
De Juin 2024 à Juil 2024

Debenhams (LSE:DEB)
Graphique Historique de l'Action
De Juil 2023 à Juil 2024