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16 Sep 2008 07:00
16 September 2008
DEBENHAMS PLC - TRADING UPDATE
Debenhams plc, the leading department stores group, today releases a trading update for the financial year 2007/8 which ended on 30 August 2008.
Gross transaction value for the year to 30 August 2008 was 1.3% higher than the previous year. Like-for-like sales were down by 0.9% for the year. Market share gains were achieved in all major product categories. Own bought products made a strong contribution to sales. Gross margin was flat on last year, in line with guidance 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 year was at a historically low level, enabling us to enter the new financial year with a very clean stock position. Stock levels continue to be managed tightly and we have already achieved the anticipated 10% stock density reduction as part of our objective to simplify our consumer offer.
Two new department stores in Dunfermline and Blackpool opened in the last couple of weeks of August which will contribute 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, plus the differentiation of our exclusive designer ranges, has resulted in market share gains both overall and for each major clothing category and enabled us to deliver what we believe to be a creditable sales performance given the retail climate.
"Trading in August showed a marked improvement over July but the UK 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 in what continues to be a challenging macroeconomic environment."
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 8:30am on 0845 1130070 (UK) or +44 1452 555031 (overseas), conference ID 62971946. A reply of the call will be available for seven days on 0845 2455205 (UK) or +44 1452 550000 (overseas), PIN 62971946#.
Notes to Editors
Debenhams is a leading department stores group with a strong presence in key product categories, including womenswear, menswear, childrenswear, homeware and health and beauty.
Debenhams has a total of 139 department stores in the UK and Republic Ireland and ten 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 41 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, Frost French, Betty Jackson, Ben de Lisi, Julien Macdonald, Pearce Fionda, John Rocha and Matthew Williamson.
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