14th Apr 2016 06:29
LONDON (Alliance News) - Debenhams PLC on Thursday reported growth in profit in the first half of its financial year as it revealed the search for a new chief executive is underway.
The department store operator said pretax profit in the 26 weeks ended February 27 grew to GBP93.8 million from GBP88.9 million in the first half of the prior year, as revenue remained broadly flat at GBP1.327 billion from GBP1.325 billion.
Debenhams said that while it achieved a record Christmas, the rate of sales growth in the half was reduced due to it carrying less stock into the post-Christmas sale. This did, however, support a 90 basis points reduction in markdowns in the half, while gross margin improved by 20 basis points.
Debenhams will pay an interim dividend of 1.025p, a 2.5% increase on the 1,000p paid the year before.
Debenhams added that Chief Executive Michael Sharp on Thursday submitted his resignation to the board, having announced he would be stepping down last October. The retailer said the process to appoint a successor is well-advanced and details will be communicated in due course.
"Although there is plenty more to do, we are on track to deliver full year results in line with market expectations. When I leave the business later this year I am confident that it will be in a good position to deliver continued sustainable growth under a strong and capable management team," Sharp said in a statement.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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