Retailer Results / Debenhams



Trading Update
Half year results for the 26 weeks to 27 February 2016

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Trading Update
19 weeks to 9 January 2016


• Group gross transaction value +2.5 per cent
• Group like-for-like sales +3.5 per cent in constant currency; +1.9 per cent as reported
• Online sales +12.1 per cent
• Click & collect penetration has risen to 31 per cent
• Gross margin within FY16 guidance of +0 to +50bps
• Strong performance in the 7 week Christmas period to 9th January:
- LFL sales +3.7 per cent in constant currency, two year growth of +7.1 per cent; +1.8 per cent as reported
- Online sales +15.4 per cent, +26 per cent over two years


These are positive numbers for Debenhams and in the 19 week period, Group gross transaction value rose by 2.5 per cent, with like-for-like growth of 3.5 per cent in constant currency, 1.9 per cent as reported.

The Christmas period, 7 weeks to 9 January, delivered robust growth in a seemingly tricky market and full price sales grew by 5 per cent over the period. Black Friday was also highlighted as having been a success.

A planned reduction in outerwear clothing stocks was necessary to stimulate sales in a difficult autumn season from the mild weather and the post-Christmas sales period was entered with less stock than the previous year. Beauty also performed well in a competitive market. Non-clothing categories now account for 55 per cent of total revenues.

Online sales delivered continuing positive momentum in the 19 week period, growing 12.1 per cent and with stronger growth over peak periods. This reflected increasing customer confidence with an improving service proposition that boasted later cut-off times. Mobile was the fastest growing channel. Click and collect penetration increased, growing at 45 per cent year on year and accounting for 31 per cent of online orders in H1.

International sales grew in line with expectations, with Magasin du Nord continuing to deliver good growth and record Christmas trading helped by a recovering Danish economy.

Michael Sharp, Chief Executive of Debenhams, said: "We have traded well in the first 19 weeks of the financial year with a strong performance over peak resulting in a record Christmas. This performance is evidence that our strategy is working with our customers finding our mix of products and brands both compelling and great value for money. The further improvements to our service proposition and our online presentation have delivered strong multi-channel sales growth, building on the progress we saw last year.”

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