www.debenhams.com
Debenhams is a United Kingdom department store group with a mix of own brands and third-party brands. As of August 29, 2009, the Company had 154 stores.
Debenhams year to-date like-for-like sales drop 3.5%
Debenhams PLC reported a 3.5 percent drop in like-for-like sales for the 18 weeks to January 3 2009 compared to the same period a year earlier, while profits for the period were lifted by an increase in gross transaction value.
The department store group did not quantify the profit in today’s interim management statement, but said gross transaction value was 0.6 percent above the comparative period last year.
Shares rallied in early morning trade following the company’s comments as investors were relieved it performed in line with market expectations and avoided a washout over the crucial Christmas period.
The drop in like-for-like sales reflect the extremely difficult and volatile trading environment seen across the retail sector, it said.
The business remains strongly cash generative despite its capital investment in the opening of new stores. Net debt remains in line with management targets and as at January 3 was significantly lower than at the corresponding date last year.
The online business, Debenhams Direct, has continued to grow strongly with year-to-date visitor numbers and sales up 39.2 percent and 37.4 percent, respectively. The international franchise business also performed well and seven new stores in five countries opened during the period.
“Looking forward, the trading environment is likely to remain challenging for the whole retail sector,” Debenhams chief executive Rob Templeman said.
