Home / Knowledge / News / Apparel/Garments / Debenhams' posts marginal rise in H1FY'12 sales
Debenhams' posts marginal rise in H1FY'12 sales
19
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.

Sales
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.

Profitability:
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 19th Jan 2017

Union Budget: Textile sector expects excise duty revisions

Excise duty on man-made fibres should be reduced to bring it on par...

Apparel/Garments | On 19th Jan 2017

Apparel brand Mango adapts website for Middle East region

Spanish apparel brand Mango has unveiled an adapted version of its...

Apparel/Garments | On 18th Jan 2017

Government considering 100% FDI in single brand retail

The Government of India is looking at allowing 100 per cent foreign...

Interviews View All

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli

‘The percentage share of printing in the global textile market is pretty...

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

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


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search