TIDMDEB
RNS Number : 1371O
Debenhams plc
17 September 2013
17 September 2013
DEBENHAMS PLC : TRADING UPDATE
Debenhams plc , the leading international, multi-channel brand,
today announces a trading update for the 52 weeks to 31 August 2013
ahead of its full year results on 24 October 2013.
Highlights
-- Growth in gross transaction value and like-for-like sales
over the year including good progress in the last 10 weeks
-- Ongoing gains in market share in clothing and non-clothing
categories, including womenswear and beauty
-- Online sales up 46.2% with 50bps increase in online market share
-- Oxford Street flagship transformation on time and on budget
-- Modernised stores performing well, 12 completed during the year
-- Good international performance in the second half, especially from Magasin du Nord
-- Profit before tax anticipated to be in line with current market expectations
Michael Sharp, Chief Executive of Debenhams, said:
"I am pleased with our performance in the final quarter of the
year. We have succeeded in growing both like-for-like sales and
market share in a competitive market where consumers' disposable
income remains under pressure. I am particularly pleased with the
growth of our online business.
"While the return to more seasonal weather conditions over the
summer has been helpful, the main factor behind this performance
has been the relentless focus of everyone at Debenhams on
implementing the four pillars of our strategy to create a leading
international, multi-channel brand. I'd like to thank all our
employees for their hard work over the past year. Looking forward,
we are confident in our strategy but are not expecting any rapid
recovery in consumer sentiment and the marketplace remains highly
competitive."
Positive sales performance - strategy on track
10 weeks 26 weeks 52 weeks
23 June 2013 2 March 2013 2 September
to to 2012 to 31 August
31 August 2013 31 August 2013 2013
------------------------- ---------------- ---------------- -------------------
Group gross transaction
value +2.1% +1.4% +2.5%
------------------------- ---------------- ---------------- -------------------
Group like-for-like
sales +1.9% +0.8% +2.0%
------------------------- ---------------- ---------------- -------------------
Gross transaction value and like-for-like sales for the Group
have grown during the year. This has been driven by progress made
in the four pillars of our strategy to build a leading
international, multi-channel brand.
1. Focusing on UK retail
-- The stores modernised during 2012 and the first half of 2013 performed well.
-- The Oxford Street project is on schedule with disruption to
store trading in line with guidance.
-- New stores opened during the year in Chesterfield and
Lichfield performed ahead of their internal expectations.
2. Delivering a compelling customer proposition
-- We have grown or maintained market share in all key
categories, particularly in the latter part of the year with total
clothing/footwear/accessories share up by 30 basis points in the 12
weeks to 4 August 2013 (source: Kantar Worldpanel Fashion).
-- Customers' demands for product newness and innovation are
being met through new brands such as Hammond & Co. by Patrick
Grant, our first new Designers at Debenhams menswear brand for ten
years, Todd Lynn who has joined Edition in womenswear, Top Hat by
Stephen Jones in women's accessories and Donna & Markus by
designer Markus Lupfer in childrenswear.
-- We continue to drive sales and improve brand perceptions
under the "Life Made Fabulous" campaign.
3. Increasing availability and choice through multi-channel
-- Online sales continued to grow well ahead of the market with
sales up by 46.2% for the 52 weeks compared with 14.4%* for the
market.
-- Online market share increased by 50 basis points to 3.7%*.
-- We continue to see significant growth in mobile, with visits
up 72% and revenue up 128% during the year.
*Source: Kantar Worldpanel Fashion 24 weeks to 4 August 2013 vs.
2012
4. Expanding the brand internationally
-- Franchise stores performed well in the second half of the
year following the closure of a number of stores in the first half
of the year.
-- Magasin du Nord delivered a strong sales performance with
like-for-like sales up 7.2% in DKK and 6.0% in GBP for the 52
weeks.
-- International online continued to grow quickly, albeit from a small base.
Margin, costs and stock in line with guidance
Gross margin for the 52 weeks to 31 August 2013 is expected to
be flat, in line with guidance, reflecting a good recovery in the
second half following a decline of 20 basis points in the first
half.
Operating costs are also expected to be in line with guidance
provided in the interim management statement on 27 June 2013.
Terminal stock at the end of the year will be in line with the
long-term average of c.3%.
Anticipated outcome for the year in line with market
expectations
We anticipate that profit before tax for the year will be in
line with current market expectations.
- Ends -
Debenhams is holding a capital markets event for analysts and
investors focusing on the third pillar of the strategy,
multi-channel, on Thursday 3 October 2013.
The final results for the 52 weeks to 31 August 2013 will be
announced on Thursday 24 October 2013. A presentation for analysts
and investors will be held at 9:00am on that day at Nomura
International, 1 Angel Lane, London EC4R 3AB.
Enquiries
Analysts and investors
Lisa Williams, Debenhams 020 3549 6304, 07908 484841
Media
Simon Sporborg, Brunswick 020 7404 5959
Tim Danaher, Brunswick 020 7404 5959
High resolution images are available for media to view and
download free of charge from www.prshots.com/Debenhams. Follow us
on twitter at @IRDebenhams and @Debenhams.
Notes to editors
Debenhams is a leading international, multi-channel brand with a
proud British heritage which trades out of 236 stores across 28
countries. Debenhams gives its customers around the world a unique,
differentiated and exclusive mix of own brands, international
brands and concessions.
In the UK, Debenhams has a top five market share in womenswear
and menswear and a top ten share in childrenswear. It leads the
market in premium health and beauty.
Debenhams is the tenth biggest UK online retailer by traffic
volume and in March 2013 was awarded "International Growth
Initiative of the Year" and "Retail Technology Initiative of the
Year for Endless Aisle" at the Oracle Retail Week Awards.
Debenhams has been investing in British design for 20 years
through its exclusive Designers at Debenhams portfolio of brands.
Current designers include Abigail Ahern, Jeff Banks, Jasper Conran,
FrostFrench, Patrick Grant, Henry Holland, Roksanda Ilincic, Betty
Jackson, Ben de Lisi, Markus Lupfer, Todd Lynn, Julien Macdonald,
Jane Packer, Jenny Packham, Pearce Fionda, Stephen Jones, Preen,
Janet Reger, John Rocha, Jonathan Saunders, Marios Schwab, Ashley
Thomas, Eric Van Peterson and Matthew Williamson.
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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