RE: 25 October 20188 Jan 2019 13:51
Strategic summary
Good progress on five priority actions under Debenhams Redesigned strategy:
· Delivered above-market digital growth of 12% supported by improved mobile and customer experience
· Sustaining market leadership in Beauty with new strategy designed to drive more choice and digital innovation
· Revitalising fashion product under new leadership; held share in clothing, and gained in womenswear
· Improved in-store experience for customers, with 9 stores trading in new design format and new service model
· Accelerated cost reduction activity with £12m savings achieved, annualising to £20m
Decisive action under way in challenging market conditions to generate cash, reduce debt and reshape store estate:
· Additional cost reductions of c.£50m annualised, taking cumulative cash savings to c.£130m by FY2020
· Revised capex plans for FY2019 of c.£70m, focusing on priority elements of Debenhams Redesigned strategy
· Comprehensive review of store portfolio to address structural challenge and drive profitable growth:
o focusing future investment to deliver Debenhams Redesigned principles on up to 100 stores;
o increasing closure plans from 10, to up to 50 under-performing stores over 3-5 years; and
o developing new lower-cost approach for c.20 stores
· Cash exceptional charges of £12.3m in year, non-cash exceptional write-downs of £512.4m primarily relating to store and lease provisions, systems and impairment to historic goodwill
· In line with stated plan to prioritise debt reduction and cash generation, no final dividend will be paid
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