Debenhams Regulatory News (DEB)

18 Mar 2008 07:00

Debenhams plc18 March 2008 18 March 2008 DEBENHAMS plc FIRST HALF TRADING UPDATE Debenhams plc, the leading department stores group, today releases a tradingupdate for the 26 weeks ended 1 March 2008. Sales for the 26 weeks ended 1 March 2008 were 1.2% higher than the prior year.Like-for-like sales for the period were 0.7% lower than last year, reflectingchallenging trading conditions across the sector in January and February.Despite this, Debenhams has gained market share in all major clothingcategories. Gross margin for the first half is expected to be down year-on-year by some 20basis points. This is largely due to price realignments in some ranges in thesecond half of last year, particularly in menswear. Terminal stocks are asplanned and remain at historical levels. Profit before tax for the first half is expected to be in line with marketestimates. Debenhams' interim results will be announced on 15 April 2008. Commenting on the first half sales, Rob Templeman, CEO of Debenhams, said: "Following a good performance over Christmas and the January sale, marketconditions were tough through the remainder of January and February.Nevertheless, we are pleased with the response of customers to our new season'sranges and to the improvements we have made in quality, design and value at allprice levels, as evidenced by our market share gains. "The macro economic climate leads us to expect the retail environment to remain challenging and we are therefore focusing on driving sales, gaining market share and controlling our stocks and cost base." A conference call will be held today at 8:30am on 0845 1130070 (UK) or +44 (0)1452 562717 (overseas), conference ID 39283991. A replay of the call will beavailable for seven days on 0845 2455205 (UK) or +44 (0) 1452 550000 (overseas),PIN 39283991#. Enquiries Debenhams plc Rob Templeman, Chief Executive Chris Woodhouse, Finance Director 020 7408 3302 Lisa Williams, Investor Relations 020 7408 3304 Financial Dynamics Jonathon Brill 020 7269 7170 Billy Clegg 020 7269 7157 Caroline Stewart 020 7269 7227 High resolution images are available for media to view and download free ofcharge from www.prshots.com/Debenhams. Statements made in this announcement that look forward in time or that expressmanagement's beliefs, expectations or estimates regarding future occurrences andprospects are "forward-looking statements" within the meaning of the UnitedStates federal securities laws. These forward-looking statements reflectDebenhams' current expectations concerning future events and actual results maydiffer materially from current expectations or historical results. Any suchforward-looking statements are subject to various risks and uncertainties,including: Debenhams' ability to accurately predict customer preferences anddemands; the effectiveness of Debenhams' brand awareness and marketingprogrammes; the occurrence of weak sales during peak selling seasons or extremeor unseasonal weather conditions; difficult market conditions and fragileconsumer confidence; competitive factors in the highly competitive retailindustry; Debenhams' ability to successfully implement its new store rollout anddepartment store refurbishment/modernization strategy; Debenhams' ability tomaintain its relationships with certain designers and its significant concessionpartner; and currency fluctuations and currency risk. * * * Additional risk factors that you may want to consider are: Debenhams' ability toretain key management and personnel; disruptions or other adverse eventsaffecting Debenhams' relationship with its major suppliers or its store cardprovider; factors outside Debenhams' control, such as changes in the financialor equity markets, adverse economic conditions or a downturn in the retailindustry, or damage or interruptions due to operational disruption, naturaldisaster, war or terrorist activity; and work stoppages; slowdowns or strikes. Notes to Editors Debenhams is a leading department stores group with a strong presence in keyproduct categories, such as womenswear, menswear, homeware and health andbeauty. Debenhams has a total of 135 department stores in the UK and Republic Irelandand 10 Desire by Debenhams stores, which are a new small store concept featuringa mix of womenswear, accessories, lingerie, cosmetics and childrenswear.Debenhams has a further 40 international franchise stores in 16 countries and anonline store, www.debenhams.com, through which much of the Debenhams' range isavailable. Debenhams is the second largest department store chain in the UK. Designers at Debenhams include Ted Baker, Jasper Conran, Theo Fennell, PearceFionda, Frost French, Betty Jackson, Ben de Lisi, Julien Macdonald, JohnRichmond, John Rocha and Matthew Williamson. This information is provided by RNS The company news service from the London Stock Exchange