24 Jun 2008 07:00
24 June 2008
DEBENHAMS PLC - INTERIM MANAGEMENT STATEMENT
Debenhams plc, the leading department stores group, today releases its interim management statement for the 42 weeks ended 21 June 2008.
Gross transaction value for the 42 weeks to 21 June 2008 was 1.3% higher than the same period last year. Although like-for-like sales were down by 0.6% for the 42 week period, over the ten weeks since the last trading update at the interim results, like-for-like sales have grown by 1.0%.
Debenhams has continued to gain market share across key product categories as customers find favour with our strategy of increasing the quality and value of our products at the same time as improving the in-store environment. Own bought and in particular designer ranges continue to perform well and, as a consequence, gross margin guidance for the year as a whole of flat to plus 20 basis points is unchanged.
The company remains highly cash generative and net debt at year end is expected to be in line with market consensus. No changes have been made to supplier terms outside the ordinary course of business. Progress has been made on de-leveraging the balance sheet as set out at the presentation of our interim results in April 2008. The cost saving target of £20 million has already been achieved and will take full effect in 2009. Plans to improve the customer experience through brand consolidation and SKU rationalisation are on target and will be achieved by the start of the new financial year.
Debenhams' new 130,000 square feet flagship store opened in Liverpool at the end of May and is trading ahead of expectations. A further two department stores in Dunfermline and Blackpool are due to open before the end of the financial year and five department stores, including White City in October, and two Desire stores in 2008/09.
A resolution to approve the scrip dividend scheme was approved at an EGM held on 3 June 2008. Shareholders representing some 45% of the issued share capital have elected to take the scrip dividend.
Rob Templeman, Chief Executive of Debenhams, said:
"In light of the tough trading environment across the whole UK retail sector, we are pleased with customer response to our new ranges and, as a result, our improving sales performance for the period. The strength of Designers at Debenhams is particularly pleasing. We continue to take market share across our key product categories."
Enquiries
Analysts/Shareholders
Debenhams plc
Rob Templeman, Chief Executive
Chris Woodhouse, Finance Director 020 7408 3302
Lisa Williams, Investor Relations 020 7408 3304
Media
Financial Dynamics
Jonathon Brill 020 7269 7170
Billy Clegg 020 7269 7157
Caroline Stewart 020 7269 7227
A conference call for analysts and investors will be held today at 8:00am on 0845 1130070 (UK) or +44 (0) 1452 562717 (overseas), conference ID 52521740. A reply of the call will be available for seven days on 0845 2455205 (UK) or +44 (0) 1452 550000 (overseas), PIN 52521740#.
Notes to Editors
Debenhams is a leading department stores group with a strong presence in key product categories, such as womenswear, menswear, homeware and health and beauty.
Debenhams has a total of 137 department stores in the UK and Republic Ireland and 10 Desire by Debenhams stores, which are a new small store concept featuring a mix of womenswear, accessories, lingerie, cosmetics and childrenswear. Debenhams has a further 39 international franchise stores in 15 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, Theo Fennell, Pearce Fionda, Frost French, Betty Jackson, Ben de Lisi, Julien Macdonald, John Richmond, John Rocha and Matthew Williamson.