TIDMDEB
RNS Number : 9283C
Debenhams plc
15 March 2011
15 March 2011
DEBENHAMS PLC: FIRST HALF TRADING UPDATE
Debenhams plc, the leading department stores group, today
releases a trading update for the first half of its 2011 financial
year which comprises the 26 weeks to 26 February 2011.
Group gross transaction value for the first half increased by
3.2% over the previous year. Group like-for-like sales[1] for the
period were flat including VAT and down 1.5% excluding VAT. Magasin
du Nord continued
to perform well, with like-for-like sales for the first half up
9.3% on a Danish kroner basis (up 3.9% on a sterling basis).
Input cost inflation across the clothing sector has been
well-publicised but we were able to offset some pressures on gross
margins by our ongoing focus on the drivers of cash margin, in
particular the own bought sales mix and markdown management. Stock
density remains under control and we continue to expect terminal
stocks at the end of the half to be at an all-time low. As a result
of these actions, gross margin increased during the first half over
the prior year in line with management expectations.
Higher margins and the benefits of a lower interest charge
helped offset the negative impact of December weather and dual
running costs associated with our investment in a new distribution
centre. Therefore headline profit before tax for the first half is
expected to be ahead of last year and in line with market
consensus.
New product launches: Our commitment to ensuring Designers at
Debenhams remains at the heart of our offer has resulted in a
number of new product launches for spring summer 2011. Our new
designer concept Edition launched in February with womenswear
collections from Jonathan Saunders and Preen and an accessories
collection from Jonathan Kelsey. Initial customer response has been
extremely positive. Roksanda Ilincic will join the Edition
portfolio later in the year. Diamond by Julien Macdonald is also
new for spring summer. In menswear, J Jeans by Jasper Conran has
been introduced as a casual addition to the existing Jasper Conran
range. A new brand advertising campaign was launched in February
which focuses on the Designers at Debenhams brand and includes TV,
print, digital and social media adverts.
Multi-channel developments: Our strategy to create a truly
integrated multi-channel business continues to move forward. Sales
from Debenhams Direct increased by 82.4% (excluding VAT) during the
first half of the year. Work in the first half focused on improving
multi-channel access points with the launch of the iPhone app and
Debenhams TV and rolling out self-service order kiosks to more
stores as well as the launch of local currency online shopping in
the Republic of Ireland through debenhams.ie. Our online offer has
been strengthened further with many new additions.
Investing for future growth: We are continuing to invest in the
business in order to improve the shopping experience for our
customers. Five store refits were undertaken in the first half and
are performing in line or ahead of expectations. Another 4-6 refits
are scheduled to start in the second half for completion by the end
of the summer. One new department store was opened during the half
in Bath. A new department store in Wakefield and a new Desire store
in Fareham will open during the second half. We are in advanced
discussions on a number of additional store openings. Construction
of the new distribution centre is progressing well and it will be
fully operational by the end of this calendar year. Overall capex
guidance for the year remains in the region of GBP120 million.
Balance sheet: Net debt at the end of the first half is expected
to be in the region of GBP350 million, a reduction of GBP160
million against both the same point last year and the start of the
current financial year. On a pro forma basis using last year's
reported IFRS EBITDA, this would reduce leverage from 1.8 times a
year ago to 1.2 times at the end of the first half.
Rob Templeman, Chief Executive of Debenhams, said:
"Our performance in the first half has been pleasing given the
difficult trading environment. Our strategy of increasing own
bought sales, as well as focusing on profit and cash generation,
has again delivered margin gains despite the significant headwinds
being experienced in the clothing sector supply chain.
"Looking forward, it is clear that disposable income is under
pressure from inflation, public sector spending cuts and higher
taxation. As a result, trading across the UK high street is likely
to be difficult in the second half of the year. We will continue to
pursue the self-help measures we have been working on over the past
two years - driving market share and cash margin through own bought
product ranges, increasing multi-channel access points, improving
the instore environment through refits - which will be beneficial
to the business whatever the trading environment."
A conference call for analysts and investors will be held today
at 9:00am. To join this call, please dial +44 (0) 20 3140 0820 or
+1 718 705 7514. A recording will be available for seven days on
+44 (0) 20 3140 0698 or +1 877 846 3918, PIN 376527#.
Debenhams plc's interim results for the six months to 26
February 2011 will be released at 7:00am on Thursday 14 April
2011.
Note: 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. Neither the content of the Company's website
nor the content of any website accessible from hyperlinks on the
Company's website (or any other website) is (or is deemed to be)
incorporated into or forms (or is deemed to form) part of this
announcement.
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.
[1] Like-for-like sales relate to stores which have been open
for one year or more. Group like-for-like sales include Magasin du
Nord from 7 November, the anniversary of acquisition.
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTGGUCCWUPGGRC
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