Please fill in your details to download the Table of Contents of this report for free. We also do customization of these reports so you can write to us at email@example.com in case you need any other additional information.
During the year, the company revitalised fashion product under new leadership and held share in clothing, and gained in womenswear. It also improved in-store experience for customers, with 9 stores trading in new design format and new service model. The company accelerated cost reduction activity with £12 million savings achieved, annualising to £20 million.
"It has been a tough year for retail in 2018 and our performance reflects that. We are taking decisive steps to strengthen Debenhams in a market that remains volatile and challenging. Working with our new CFO Rachel Osborne, and the board, I am determined to maintain rigorous cost and capital discipline and to prioritise investment to achieve profitable growth. At the same time, we are taking tough decisions on stores where financial performance is likely to deteriorate over time," Sergio Bucher, CEO, said.
The company's gross transaction value decreased 1.8 per cent to £2,900.4 million and the revenue decreased 2.5 per cent to £2,277.0 million. Like-for-like sales decreased 2.3 per cent on a reported basis and 2.7 per cent on a constant currency basis. Our core markets of fashion and beauty were weak during the period. UK EBITDA declined 35.6 per cent whilst international EBITDA grew by 5.3 per cent, with Magasin du Nord in Denmark delivering further progress despite a weaker market background.
"Debenhams remains a strong and trusted brand with 19 million customers shopping with us over the past year. Our transformation strategy is gaining traction, with positive results from new product and new formats, general acclaim for our store of the future in Watford and digital growth that is outpacing the market. With a strengthened balance sheet, we will focus investment behind," Bucher added.
It has been a tough year for UK retail and the retailer's trading performance in FY18 reflects that. Nevertheless, the company has seen the first positive signs of results in its Debenhams Redesigned strategy that shows transformation is gaining traction. Against the backdrop of a rapidly-changing retail market, it identified five priority actions in April that would help to mitigate the effects of a volatile marketplace; that can be scaled quickly; and are expected to be faster-returning.
"We now have a clear vision of what the future of our stores could look like, embodied in our Watford store. With the support of our landlords, we will be able to replicate the key elements of the store of the future across the c.100 stores where we expect to see a positive return. We are planning for digital to account for approximately 30% of our business, compared with c20 per cent currently, centred around mobile interaction with our customers," concluded Bucher. (RR)
Fibre2Fashion News Desk – India
| On 4th Jul 2020
Twenty UK retailers have signed a declaration to develop a road map...
| On 4th Jul 2020
Kenya's Thika Cloths Mills that was on the brink of closure following ...
Amazon, the largest online retailer, has joined CanopyStyle...
There's a lot more potential in women than what we are witnessing today
Palod Himson Machines
Fabric processing machines are picking up
Textile & apparel bodies
Textile industry would like to see inclusion of cotton yarn under MEIS and ...
India-headquartered Lulu & Sky is a rapidly escalating brand with the...
Ritu Ajbani & Neha Agarwal
Petit Royal, co-founded by entrepreneurs <b>Ritu Ajbani and Neha...
Established in 1956 with a small beginning, Embee today manufactures a...
Technical Absorbents Ltd
Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...
Broadcast Wearables Pvt Ltd
Hyderabad-based Broadcast Wearables has come up with the country's first...
Kevin Young & Tom Lucas
Web Industries is a precision formatter of nonwoven materials used in baby ...
The creations by Aprajita Toor were born out of a deep desire to create...
Usha Social Services
The Usha Silai label from Usha International is all set for a retail...
Sandeep and Sarah Shaikh Gonsalves
SS Homme celebrates the craft of traditional tailoring through the bespoke ...
Letter to Editor
Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.
Subscribe today and get the latest information on Textiles, Fashion, Apparel.