TIDMDEB
RNS Number : 1434Z
Debenhams plc
10 January 2011
10 January 2011
DEBENHAMS PLC - INTERIM MANAGEMENT STATEMENT
-- Group gross transaction value +4.2%
-- Like-for-like sales +0.3% inc VAT
-- Like-for-like sales -1.3% ex VAT
-- Continuing market share gains
-- Gross margin improvement
-- Debt and financing costs improved
Debenhams plc, the leading department stores group, today
announces its interim management statement for the 19 weeks to 8
January 2011.
Group gross transaction value for the 19 weeks increased by
4.2%. Group like-for-like sales increased by 0.3% including VAT and
decreased by 1.3% excluding VAT. Investment in the multi-channel
model continues to deliver strong growth with Debenhams Direct and
the instore ordering service recording a sales increase of 88.5%
during the period. Magasin du Nord continued to trade well with
like-for-like sales up 11.5% on a Danish kroner basis (up 5.5% on a
sterling basis).
Debenhams has continued to gain market share. In the most
recently available data which covers the 24 weeks to 31 October
2010, total market share increased by 10 basis points with men's
clothing and children's clothing increasing by 30 basis points and
20 basis points respectively. Encouragingly, women's clothing
market share increased by 10 basis points during this period, the
first gain since the 2009 space moves (source: Kantar Worldpanel
Fashion 24 weeks market share data to 31 October 2010 vs.
2009*).
Group gross margin is ahead of last year for the 19 week period.
This is largely the result of the ongoing strategy to improve the
participation of own bought merchandise and our continuing focus on
margin management. Stocks remain firmly under control and it is
anticipated that terminal stocks will be at an all-time low level
at the end of the first half.
The Group has continued to invest in the business in terms of
new stores store refits and increasing multi-channel access points.
A new department store opened in Bath in September. Two further
stores are scheduled to open over the remainder of the financial
year: a department store in Wakefield and a Desire store in
Fareham. Store refits were completed in Leeds City Centre,
Merryhill, Milton Keynes, Portsmouth and Romford during the period.
A further 4-6 refits will commence in the second half of the
financial year. One new franchise store has opened in Yerevan,
Armenia and our medium-term target remains 100 stores.
New multi-channel developments launched in the period include a
Debenhams app for the iPhone and an online video format called
Debenhams TV as well as self-service kiosks which will improve
availability and ranging for instore customers.
In October 2010, Debenhams announced that Jonathan Saunders,
Preen, Jonathan Kelsey and Roksanda Ilincic will be joining
Designers at Debenhams in a new format called Edition which will
launch in February 2011. Edition will bring the fashion industry's
emerging talent to Debenhams' customers.
On 30 November 2010, the Group repaid GBP150 million of debt
cancelling its existing GBP806 million bank facility and drawing
the GBP650 million forward start facility negotiated in July 2010.
The new facility includes a GBP400 million revolving credit
facility that enhances the Group's ability to manage working
capital efficiently and minimise interest costs of borrowings held
alongside surplus cash. The Group will further benefit from the
lower fees payable under the smaller facility.
Rob Templeman, Chief Executive of Debenhams, said:
"The performance of our business year-to-date has been pleasing,
especially given the widespread disruption in December caused by
bad weather which undoubtedly impacted Group like-for-like sales by
2.5-3.0% over the 19 week period. We have made good progress in
terms of both gross margin and market share and I am particularly
pleased that our market share in women's clothing has begun to
demonstrate growth.
"Looking forward, we are cautious about the robustness of
consumer sentiment for the remainder of the financial year. Despite
this, we have a clear strategy of self-help initiatives which focus
on gross margin management, driving market share and growth through
expansion and investment which we believe will enable Debenhams to
continue to make progress over the coming months."
*Clothing includes underwear, nightwear & hosiery
- Ends -
A conference call for shareholders and analysts will be held
today at 9:00am UK time. To join this call, please dial +44 (0) 20
3140 0820 (UK/Europe) or +1 718 705 7514 (US). A recording of the
call will be available for seven days on +44 (0) 20 3140 0698
(UK/Europe) or +1 877 846 3918 (US), replay code 375424#.
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.
Enquiries
Investors and analysts
Debenhams plc
Rob Templeman, Chief Executive
Chris Woodhouse, Finance Director
Lisa Williams, Investor Relations 020 7408 3304, 07908
483841
Press
Financial Dynamics
Jonathon Brill 020 7269 7170
Caroline Stewart 020 7269 7227
Notes to Editors
Debenhams is an iconic British department store group which was
established over 200 years ago. Debenhams has a strong presence in
key product categories including womenswear, menswear,
childrenswear, home and health and beauty and offers its customers
a unique and differentiated mix of exclusive own bought brands
including Designers at Debenhams, international brands and
concessions.
Debenhams has a total of 167 stores in the UK, the Republic of
Ireland and Denmark. Debenhams also has 61 international franchise
stores in 24 countries and an online store, www.debenhams.com,
through which much of the Debenhams range is available.
Designers at Debenhams include Ted Baker, Jeff Banks, Jasper
Conran, Erickson Beamon, FrostFrench, Henry Holland, Roksanda
Ilincic, Betty Jackson, Jonathan Kelsey, Ben de Lisi, Julien
Macdonald, Melissa Odabash Jane Packer, Pearce Fionda, Preen, Janet
Reger, John Rocha, Jonathan Saunders, Lisa Stickley, Eric Van
Peterson and Matthew Williamson.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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