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24 Jun 2008 07:00
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24 JuneΒ 2008
DEBENHAMS PLC - INTERIM MANAGEMENT STATEMENT
Debenhams plc, theΒ leadingΒ department stores group, today releases its interim management statement for the 42 weeks ended 21Β June 2008.
Gross transaction valueΒ for the 42Β weeks to 21Β June 2008Β wasΒ 1.3%Β higher than the same period last year. Although like-for-like salesΒ were downΒ byΒ 0.6%Β 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 shareΒ across key product categoriesΒ as customers find favour withΒ ourΒ strategy of increasing the quality and value ofΒ ourΒ productsΒ at the same time asΒ improving the in-store environment. Own boughtΒ and in particular designerΒ rangesΒ continueΒ to performΒ wellΒ and,Β as a consequence,Β gross marginΒ guidanceΒ for the year as a wholeΒ of flat to plus 20 basis pointsΒ is unchanged.
The company remains highly cashΒ generative and net debt atΒ yearΒ endΒ is expected toΒ be in line with marketΒ 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 outΒ atΒ the presentation of ourΒ interim results in AprilΒ 2008. The cost saving target of Β£20 million has already been achieved and will take full effect inΒ 2009. Plans to improve the customer experience through brand consolidation and SKU rationalisationΒ areΒ on target and will be achieved by the start of the new financial year.
Debenhams' new 130,000 square feet flagship storeΒ openedΒ inΒ LiverpoolΒ at the end of MayΒ and is tradingΒ ahead ofΒ expectations. A further two department storesΒ in Dunfermline and BlackpoolΒ are due to open before the end of theΒ financial yearΒ andΒ fiveΒ departmentΒ stores, including White CityΒ in October, and two Desire stores in 2008/09.
A resolution toΒ approve theΒ scrip dividendΒ schemeΒ 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 ofΒ the tough trading environment across the wholeΒ UKΒ retail sector,Β we are pleased withΒ customerΒ response to our new ranges and,Β as a result,Β our improvingΒ sales performance for the period. The strength ofΒ Designers at DebenhamsΒ is particularly pleasing.Β Β We continue to take market share across our key product categories." Β
Β Β Enquiries
Analysts/Shareholders
Debenhams plc
Rob Templeman, Chief ExecutiveΒ
Chris Woodhouse, Finance Director 020 7408 3302Β
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 onΒ 0845Β 1130070Β (UK) orΒ +44 (0)Β 1452 562717Β (overseas), conference ID 52521740.Β A reply of the call will be available for seven days on 0845 2455205 (UK) or +44 (0) 1452 550000 (overseas), PINΒ 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.Β
Debenhams has a total of 137Β 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,Β www.debenhams.com, through which much of the Debenhams range is available.
Debenhams is the second largest department store chain in theΒ 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.
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