Debenhams plc Trading Update (8567R)
March 05 2019 - 2:45AM
UK Regulatory
TIDMDEB
RNS Number : 8567R
Debenhams plc
05 March 2019
This announcement contains inside information
5 March 2019
DEBENHAMS PLC
Trading Update
Debenhams today announces an update on trading for the 26 weeks
to 2 March 2019.
As set out in the trading statement of 10 January 2019, the
first 18 weeks of our financial year saw Group gross transaction
value ("GTV") decline (5.6)%, with LFL down (5.7)%. The UK was down
(6.2)% with International down (3.5)%. Digital sales grew by 4.6%
across the period.
In the subsequent eight weeks, Group GTV has moderated its
decline to (5.0)%, with LFL of (4.6)%. Overall, for the 26 weeks of
H1, to 2 March 2019[1], Group GTV has declined (5.4)%, with LFL of
(5.3)%. The UK was (6.0)% with International down (2.3)%. Digital
sales have grown by 2.0% across the period. The annualised GBP80m
cost saving programme is on track, and we expect the first ranges
resulting from our sourcing partnership with Li & Fung will be
in stores in the current season.
Further to our announcement of 12 February regarding the
additional GBP40m bridge facility, discussions with stakeholders
have now progressed to include options to restructure our balance
sheet in order to address our future funding requirements, and are
continuing constructively.
While trading headwinds have moderated in recent weeks, this
process is likely to be disruptive to our business in the coming
months. Taken together with macroeconomic uncertainties and
increased financing costs as a result of additional working capital
needs, this means that the Group's statement made on 10 January
that we were "on track to deliver current year profits in line with
market expectations" is no longer valid. We will provide a further
update with our interim results announcement.
Sergio Bucher, Chief Executive of Debenhams, said:
"We are making good progress with our stakeholder discussions to
put the business on a firm footing for the future. We still expect
that this process will lead to around 50 stores closing in the
medium term.
"Our priority is to secure the best outcome for the business and
all our stakeholders, whilst minimising the number of store
closures and job losses. To do this, as we have said before, we
will need the support of both landlords and local authorities to
address our rents, rates and lease commitments. I would like to
thank our staff - and all our stakeholders - for their continued
support through this period, as we work to deliver a sustainable
future for the company."
ENDS
Enquiries:
Analysts and investors
Debenhams PLC Rachel Osborne, CFO
Katharine Wynne, Director of Investor Relations
020 3549 6304
Media
Brunswick Group Tim Danaher/Craig Breheny/Fiona Micallef-Eynaud
020 7404 5959
debenhams@brunswickgroup.com
[1] H1 figures are unaudited and subject to normal period end
adjustments
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END
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