Debenhams plc Christmas Trading Update (9512T)
12 January 2017 - 6:00PM
UK Regulatory
TIDMDEB
RNS Number : 9512T
Debenhams plc
12 January 2017
12(th) January 2017
DEBENHAMS PLC
CHRISTMAS TRADING UPDATE
"Beauty and Gifts support good Christmas performance"
Debenhams plc, the leading international, multi-channel brand,
today announces its trading update for the 18 weeks to 7(th)
January 2017.
Financial Highlights
-- Group gross transaction value +3.7%; Group like-for-like sales as reported +3.5%
-- Group like-for-like sales in constant currency +0.5%, including UK LFL +1.0%
-- Online sales +13.9%, with two year growth of over 25%
-- Gross margin within FY17 guidance of (25bps) to +25bps, sales mix continues to be dilutive
-- Good performance in the 7 week Christmas period to 7(th) January:
- LFL sales +5.0%, +1.7% in constant currency
- Online sales +17.0%
Operational Highlights
-- We have made further progress in growing non-clothing
categories in line with our strategy. Beauty and Gift sales grew
strongly to take the non-clothing sales mix in this period to
57%
-- We have maintained market share in a competitive clothing
market whilst continuing to reduce the number of clothing options
as well as the level of discounts, with stocks down 7% year on
year
-- We have continued to reduce the overall participation of
promotional activity, with a sixth season of reduced markdown and a
2% improvement in full price sell-through in the period. We again
saw a successful Black Friday event with strong year on year growth
both online and in our stores
-- Momentum has strengthened in multi-channel sales growth,
driven by smartphone demand up 68%, with an increased uptake in
premium delivery services as our customers respond to the
improvements we have introduced
-- As planned, we have completed 75% of our current store space
optimisation programme, and rolled out a further nine food service
offers, launching two new partnerships, with James Martin Kitchen
and Franco Manca, in the period
-- Internationally, Magasin du Nord in Denmark saw a tougher
trading environment whilst the Republic of Ireland has maintained
steady performance after successfully exiting Examinership.
Sergio Bucher, Chief Executive of Debenhams, said:
"I'm pleased with the performance we have achieved in the key
trading weeks of Black Friday and over the Christmas peak, given
the challenges in the broader environment and the strong
performance last year. The resilience of Debenhams' differentiated
offer is beginning to show through, with the growth we have driven
in beauty and gifting. It's encouraging to see that the service
improvements we have made helped us to deliver strong multi-channel
sales growth.
"I witnessed the hard work of the executive team and all our
colleagues, who made sure that we were able to deliver a fantastic
service for our customers over such a busy period, complementing
the great choice of products and brands that we have to offer.
There is a lot more we can do to build from this base and I'm
looking forward to providing an update on our plans for Debenhams
alongside our interim results in April."
Sales performance
THIS YEAR LAST YEAR
Percentage change 18 wks 7 wks 19 wks 7 wks FY 16
to last year to 07/01/17 to 07/01/17 to 09/01/16 to 09/01/16
% % % % %
Group Gross Transaction
Value 3.7 5.0 2.5 2.9 1.3
Reported LFL 3.5 5.0 1.9 1.8 0.6
Constant currency
LFL 0.5 1.7 3.5 3.7 0.7
-ENDS-
A conference call for analysts and investors will be held at
8.45am today. To join the call, please dial +44 (0) 330 336 9412
(UK/Europe) or +1 719 457 1036 (US), PIN 7570154. A recording of
the call will be available for seven days on +44 (0) 20 7660 0134
or +1 719 457 0820, PIN 7570154.
Enquiries:
Analysts and investors
Debenhams PLC Matt Smith, Chief Financial Officer
Katharine Wynne, Director of Investor Relations
020 3549 6304
Media
Brunswick Group Simon Sporborg/Helen Smith
020 7404 5959
Notes to editors
Debenhams is a leading international, multi-channel brand with a
proud British heritage which trades out of over 250 stores across
27 countries. Debenhams gives its customers around the world a
unique, differentiated and exclusive mix of own brands,
international brands and concessions.
Debenhams has been investing in design for over 20 years through
its exclusive Designers at Debenhams portfolio of brands. Current
designers include Abigail Ahern, Jeff Banks, Jasper Conran, Giles
Deacon, Sadie Frost and Jemima French, Patrick Grant, Henry
Holland, Ben de Lisi, Todd Lynn, Julien Macdonald, Savannah Miller,
Jenny Packham, Aliza Reger, John Rocha, Ashley Thomas and Matthew
Williamson.
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTMMGMMNMGGNZM
(END) Dow Jones Newswires
January 12, 2017 02:00 ET (07:00 GMT)
Debenhams (LSE:DEB)
Historical Stock Chart
From Apr 2024 to May 2024
Debenhams (LSE:DEB)
Historical Stock Chart
From May 2023 to May 2024