18th Sep 2007 07:01
Debenhams plc18 September 2007 18 September 2007 Debenhams plc Trading Update Debenhams plc, the leading department stores group, today releases a tradingupdate for the 52 weeks ended 1 September 2007. Sales for the 52 weeks ended 1 September increased by 5.1% compared to the prioryear. Although we experienced some inevitable disruption from the accelerationof our refurbishment programme, in the second half like-for-like salesmaintained the trend of the first half, resulting in a 5% decline over the fullyear. Two stores were impacted by a refit during the first half compared to 19during the second. The focus on ensuring that stock is in good shape for the start of the newseason has resulted in terminal stocks making up 3.3% of the total at the yearend (2006: 3.3%). The importance of ensuring a clean inventory position as newseason merchandise arrives has, as expected, required increased markdown. This,along with investment in selected product pricing, means that in line withmarket consensus gross margin will show a full year decline. This is expectedto be in the region of 0.9%. For the year Debenhams expects to report profit before taxation and exceptionalitems in line with market expectations. (Exceptional items comprise thoseassociated with the Roches acquisition and the assignment of the lease on theJervis Street store in Dublin as announced on 27 June 2007). Two new department stores and four new Desire stores have been opened over thepast year. As at 18 September 2007, Debenhams store portfolio consists of 133department stores and nine Desire stores trading from 10.3 million square feetof prime space across the UK and Republic of Ireland. In addition, Debenhamscontinues to expand its global presence with 34 international stores, anincrease of four from last year. Rob Templeman, Chief Executive, said: "Macro economic factors suggest that the retail environment will be morechallenging in the short term, nonetheless we believe that the actions we haveimplemented across the business position us well for the new financial year. "We have focused on delivering greater value to our customers, improving stillfurther our quality and design content. We have invested selectively in price.This has proved effective, particularly in menswear where we have seen improvingmomentum in our market share. "The investment in our store portfolio and store opening programme remains ontrack. Overall we are confident that the improvements being made to our storesand to our visual merchandising, the product developments outlined above and ourrecently launched marketing campaign will ensure that the company has a strongplatform from which to build." Debenhams will report its preliminary results for the 52 weeks ended 1 Septemberat 7:00am on 23 October 2007. A conference call will be held today at 9:30am on 0845 2450319 (UK) or +44 1452568048 (overseas), conference ID 13108994. A replay of the call will beavailable for seven days on 0845 2455205 (UK) or +44 1452 550000 (overseas),PIN 13108994#. Enquiries: Analysts/ShareholdersDebenhams plcRob Templeman, Chief ExecutiveChris Woodhouse, Finance Director 020 7408 3302Lisa Williams, Investor Relations 020 7408 3304 MediaCollege HillAndy Cornelius 020 7457 2822Duncan Murray 020 7457 2823 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; competitive factors in the highly competitiveretail industry; Debenhams' ability to successfully implement its new storerollout and department store refurbishment/modernization strategy; Debenhams'ability to maintain its relationships with certain designers and its significantconcession partner; and currency fluctuations and currency risk. * * * Additional risk factors that you may want to consider are: Debenhams' abilityto retain 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 133 department stores in the UK and Republic Ireland,and a further 9 Desire by Debenhams stores, which are a new small store conceptfeaturing a mix of women's fashion, accessories, lingerie and cosmetics.Debenhams has a further 34 international franchise stores in 15 differentcountries. Debenhams is the second largest department store chain in the UK. Designers at Debenhams include Ted Baker, Nigel Cabourn, Jasper Conran, TheoFennell, Pearce Fionda, Frost French, Betty Jackson, Ben de Lisi, JulienMacdonald, John Richmond, John Rocha and Matthew Williamson. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Debenhams