Debenhams like-for-like sales up 3.1% in H1 FY'13

19 Apr '13

4 min read

The UK was severely disrupted by snow during the two significant trading weeks at the end of January that mark the end of our winter sale. UK like-for-like sales were down some 10% during this period. We took action to strengthen our promotional calendar in February but this was not sufficient to recover all those sales lost in January. As a result, profitability of the UK and the Group was lower than we had previously expected and this was communicated to the market on 4 March 2013.

International summary

In Denmark, Magasin had a successful first half with like-for-like sales up 9.8% in local currency. Consumer confidence in Denmark throughout the half showed some improvement over the prior year.The Republic of Ireland continues to be a difficult market, as evidenced by depressed consumer sentiment, but we believe we are gaining market share.

The trading environment in the franchise markets varied significantly. Six new international franchise stores opened during the first half. Twelve franchise stores closed, including six in Romania due to an extremely difficult market. The closure of the Romanian stores resulted in the write-off of a £3.8 million receivable.

FINANCIAL REVIEW

Sales

-Group gross transaction value (GTV) for the 26 weeks to 2 March 2013 grew by 3.5% to £1,535.1 million. UK GTV grew by 3.9% to £1,255.1 million, despite the adverse weather conditions, whilst International increased by 1.6% to £280.0 million.

-Statutory revenue for the Group of £1,282.3 million was 3.6% higher than last year. UK statutory revenue grew by 3.9% to £1,076.1 million and International was 2.0% higher at £206.2 million.

-Group like-for-like sales rose by 3.1% driven by growth in UK online and International (principally Magasin and online) which offset the weather-impacted performance of the UK stores.

Debenhams

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