25th Jun 2015 06:14
LONDON (Alliance News) - Debenhams PLC Thursday said that group like-for-like sales in the 15 weeks to June 13 were flat, but said it is on track to meet full-year market expectations.
The FTSE 250-listed department store operator said that while like-for-like sales were flat in the 15-week period, they were up 0.9% in the 41 weeks to June 13. The New Season Spectacular was brought forward into the first half of the year, which together with other promotional changes diluted like-for-like sales by around 1%, it said.
Online sales, however, demonstrated revenue growth of 16.7% in the 15 weeks helped by a more competitive service offer and improvements to the online presentation. Group gross transaction value was up 0.4%.
Debenhams added that its gross margin guidance for the full year remains unchanged and that it is on track to achieve full-year profit expectations.
"We have made good progress on our strategic priorities, and remain on track to deliver results in line with market expectations. During this period we have continued to focus our promotional activity around the events Debenhams is famous for; we have made further improvements to our multi-channel proposition, including more competitive delivery charges; we have commenced further space trials with a number of exciting new partnerships; and have seen continued progress in our international operations, with another strong performance from Magasin," Chief Executive Michael Sharp said in a statement.
"Our customers tell us that, whilst they recognise the improving economic background, they remain cautious in their spending. Our wide product choice, clear destination departments and improving service proposition gives us a strong platform from which to deliver long term sustainable growth," he added.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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