Home / Knowledge / News / Apparel/Garments / Debenhams' posts marginal rise in H1FY'12 sales
Debenhams' posts marginal rise in H1FY'12 sales
Apr '12
Debenhams' has released its financial performance for the first half (26 weeks to 3 March 2012). Debenhams' said it was pleased with the financial performance in the first half given the difficult economic environment and the impact of unseasonably warm weather in the autumn, which affected sales of key product categories such as outerwear.

Group gross transaction value for the period grew by 1.4% to £1,483.6 million. Excluding Magasin, gross transaction value was £1,346.0 million (H1 2011: £1,328.8 million). Statutory revenue increased by 1.3% to £1,238.3 million.

Group like-for-like sales increased by 1.4% including VAT and by 0.3% excluding VAT.

Magasin has continued to perform well. Like-for-like sales increased by 0.9% on a Danish kroner basis and by 1.7% on a sterling basis.

Market Share:
Total fashion market share for the 12 weeks to 18 March 2012 was flat at 4.7%. Womenswear share fell by 10 basis points as we completed the work to replace closed concessions. Menswear grew by 20 basis points whilst childrenswear was flat. We continue to see market share growth in categories which have been especially targeted for share growth, such as footwear and health and beauty.

Margins and Costs:
Gross margin on a Group basis was 30 basis points lower than last year in the period, in line with guidance. This includes Magasin where gross margin increased by 140 basis points as a result of a higher own bought sales mix.

Excluding Magasin, gross margin fell by 50 basis points, largely as a result of strong sales growth in the lower margin health and beauty category. For the full year, our gross margin guidance remains broadly flat.

The Group continues to manage costs tightly. Total costs (excluding interest and tax) increased by 1.7% in the first half. Full year expectations for the major cost categories remain in line with guidance provided at the start of the year.

The net interest charge decreased from £12.4 million in the first half of last year to £7.8 million this year due mainly to lower interest costs associated with the bank facilities which were refinanced in July 2011 and lower net debt.

Group EBITDA for the first half fell by 1.0% to £181.1 million. Group operating profit declined by 2.0% to £134.9 million.

Profit before tax was ahead of market consensus for the first half, up 1.4% at £127.1 million (H1 2011: £125.3 million). Headline profit before tax which adds back amortisation of capitalised bank fees of £1.4 million (H1 2011: £3.9 million) was £128.5 million (H1 2011: £129.2 million). Going forward, we will discontinue the use of headline profit before tax as it will continue to converge with the reported number.

Strategy Update:
We set out the four pillars of our strategy to create a leading international, multi-channel brand in October 2011. They are:

Must ReadView All

Textiles | On 25th Oct 2016

Arvind to dilute 10% stake in brand business arm

Arvind Limited, one of India’s largest integrated textile and apparel ...

Courtesy: Commonwealth Bank of Australia

Textiles | On 25th Oct 2016

World’s first cotton shipment using Skuchain’s Brackets

The world’s first trade transaction involving shipment of cotton...

Textiles | On 25th Oct 2016

Cotton yield to increase to 568.29 kg/ha in 2016-17: CAB

At its first meeting for the cotton season 2016-17, the Cotton...

Interviews View All

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Rajiv Sirohi

‘Portugal is taking away a major share of the mill made sector.’

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Marcel Alberts

Coating at a fibre level is a practice not usually seen in the...

Eric Scholler

The Indian market has huge potential in technical textiles, and by far,...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search