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16 Sep 2008 07:00
๏ปฟ
16 Septemberย 2008
DEBENHAMS PLC -ย TRADING UPDATE
Debenhams plc, theย leadingย department stores group, today releasesย a trading update for the financial year 2007/8 whichย endedย on 30 Augustย 2008.
Gross transaction valueย for the yearย toย 30 Augustย 2008ย wasย 1.3%ย higher than theย previousย year. Like-for-like salesย were downย byย 0.9%ย for the year. Market share gains were achieved in all major product categories. Own boughtย products made a strong contribution to sales.ย ย Gross margin was flat on last year,ย in line with guidanceย given during the year.
Profit before tax for the year and the net debt position at year end are both expected to be in line with market consensus.
Terminal stock at the end of the yearย wasย at aย historically low level, enabling us to enter the new financial year withย a very clean stock position. Stock levels continue to be managed tightly and we haveย alreadyย achieved the anticipatedย 10%ย stock density reduction as part of our objective to simplifyย ourย consumer offer.
Two newย department storesย in Dunfermline andย Blackpoolย opened inย the lastย couple ofย weeks ofย Augustย whichย will contributeย to the company's performance in the new financial year. At year end the portfolio stood at 139 department stores and ten Desire stores.
Debenhams preliminary results for the financial year 2007/8 will be released on Tuesday 21 October 2008.
Rob Templeman, Chief Executive of Debenhams, said:
"Debenhams ongoing investment in product design, quality and value,ย plusย theย differentiationย ofย our exclusive designer ranges, has resulted in market share gainsย both overall and for each major clothing categoryย and enabled us toย deliver whatย weย believe to be a creditable sales performance given theย retail climate.
"Trading in August showed a marked improvement over July but theย UKย retail sector continues to be adversely affected by wider economic concerns. We will continue to focus on meeting the needs of our customers to enable us to make further market share gains inย whatย continuesย to be aย challenging macroeconomic environment."
ย ย Enquiries
Analysts/Shareholders
Debenhams plc
Rob Templeman, Chief Executiveย
Chris Woodhouse, Finance Director 020 7408 3302ย
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 beย held today atย 8:30am onย 0845 1130070ย (UK) orย +44 1452 555031ย (overseas), conference IDย 62971946.ย A reply of the call will be available for seven days onย 0845 2455205ย (UK) or +44ย 1452 550000ย (overseas), PINย 62971946#.
Notes to Editors
Debenhams is a leading department stores group with a strong presence in key product categories,ย includingย womenswear, menswear,ย childrenswear,ย homeware and health and beauty.ย
Debenhams has a total of 139ย department stores in the UK and Republic Ireland and tenย Desire by Debenhams stores, which are a new small store concept featuring a mix of womenswear, accessories, lingerie, cosmetics and childrenswear. Debenhams has a furtherย 41ย international franchise stores inย 15ย countries and an online store,ย www.debenhams.com, through which much of the Debenhams range is available.
Debenhams is the second largest department store chain in theย UK.
Designers at Debenhams include Ted Baker, Jasper Conran, Theo Fennell, Frost French, Betty Jackson, Ben de Lisi, Julien Macdonald,ย Pearce Fionda,ย John Rocha and Matthew Williamson.
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