TIDMDEB
RNS Number : 5066L
Debenhams plc
12 January 2016
12(th) January 2016
DEBENHAMS PLC
CHRISTMAS TRADING UPDATE
Good strategic progress drives strong Christmas trading
performance
Debenhams plc, the leading international, multi-channel brand,
today announces its trading update for the 19 weeks to 9(th)
January 2016.
Financial Highlights
-- Group gross transaction value +2.5%
-- Group like-for-like sales +3.5% in constant currency; +1.9% as reported
-- Online sales +12.1%; click & collect penetration has risen to 31%
-- Gross margin within FY16 guidance of +0 to +50bps
-- Strong performance in the 7 week Christmas period to 9(th) January:
- LFL sales +3.7% in constant currency, two year growth of +7.1%; +1.8% as reported
- Online sales +15.4%, +26% over two years
Operational Highlights
-- Further progress on strategic priorities set out at the
Prelims in October 2015 delivered a strong trading performance,
with the Christmas week achieving record sales
-- Less discounting and a lower level of promotional activity
led to full price sales growth of 5%, supported by planned
reduction in stock levels across clothing, particularly in
weather-sensitive categories
-- Black Friday, which falls within our existing promotional
calendar, traded successfully and profitably with good year on year
growth both in stores and online
-- Continuing service improvements delivered a further uplift in
online performance over peak, with click & collect penetration
peaking at 46% in the pre-Christmas period and strong growth in
premium delivery services
-- As planned, five new stores opened between September and
November 2015: in Bradford, Wandsworth, Rugby, Beverley and
Newport
-- Internationally, Debenhams performed in line with
expectations, with Magasin du Nord in Denmark delivering a record
Christmas and further strong momentum in constant currency
Michael Sharp, Chief Executive of Debenhams, said:
"We have traded well in the first 19 weeks of the financial year
with a strong performance over peak resulting in a record
Christmas. This performance is evidence that our strategy is
working with our customers finding our mix of products and brands
both compelling and great value for money. The further improvements
to our service proposition and our online presentation have
delivered strong multi-channel sales growth, building on the
progress we saw last year.
"I would like to thank all our colleagues for their continued
hard work and support which has ensured that we traded our peak
period successfully and with our systems and fulfilment working
well. We remain on track to deliver full year profits in line with
market expectations."
Performance in the first half to date
In the 19 week period, Group gross transaction value rose by
2.5%, with like-for-like growth of 3.5% in constant currency, 1.9%
as reported.
Further progress on our strategic priorities has supported our
performance, delivering a good Black Friday and Christmas trading
outcome and full price sales growth across the period of 5%. A
planned reduction in outerwear clothing stocks has enabled us to
trade a difficult autumn clothing season successfully and we
entered the sale period post-Christmas with less stock than in the
prior year, in line with our expectation. Strong growth in Beauty
has reinforced our market leadership in the premium segment and
despite tough comparatives over peak, sales across gift categories
have shown good further growth. Non-clothing categories now account
for 55% of total revenues, in line with our strategy.
Online sales have delivered continuing positive momentum in the
19 week period, growing 12.1% and with stronger growth over peak.
This reflects increasing customer confidence in our service
proposition as well as later cut-off times, the extension of
endless aisle to improve availability, and more competitive premium
delivery charges. We have made further improvements in our online
presentation, with mobile orders our fastest-growing channel. As
expected, click & collect penetration has continued to
increase, growing at 45% year on year and accounting for 31% of
online orders in H1 to date.
International sales grew in line with expectations, with Magasin
du Nord continuing to deliver good growth and record Christmas
trading helped by a recovering Danish economy.
Sales performance
THIS YEAR LAST YEAR
Percentage change 19 wks 7 wks 19 wks 7 wks FY 15
to last year to 09/01/16 to 09/01/16 to 10/01/15 to 10/01/15
% % % % %
Group Gross Transaction
Value 2.5 2.9 0.2 3.3 1.3
Constant currency
LFL 3.5 3.7 0.3 3.4 2.1
Reported LFL 1.9 1.8 (0.8) 2.4 0.6
-ENDS-
A conference call for analysts and investors will be held at
8.30am today. To join the call, please dial +44 (0) 20 3427 1912
(UK/Europe) or +1 646 254 3388 (US), PIN 9914197. A recording of
the call will be available for seven days on +44 (0) 20 3427 0598
or +1 347 366 9565, PIN 9914197
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/Jon Drage
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, Betty Jackson, Stephen Jones , Ben de Lisi, Todd Lynn,
Julien Macdonald, Savannah Miller, Jenny Packham, Aliza Reger, John
Rocha, Ashley Thomas, Justin Thornton and Thea Bragazzi, Eric Van
Peterson and Matthew Williamson.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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January 12, 2016 02:00 ET (07:00 GMT)
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