3. Increasing availability and choice through multi-channel • Online sales grew ahead of the market, up by 40% in the 52 week period compared with c.13% for the market (source: Kantar 52 weeks to 5 August 2012 vs. 2011).
• Visits to debenhams.com have increased by over 50%, driven in part by extremely strong growth in mobile channels (up 27%).
Debenhams plc, the leading international, multi-channel brand, announces a trading update for the 52 weeks to 1 September 2012 ahead of its full year #
4. Expanding the brand internationally
• Another strong performance from Magasin du Nord; 52 week like-for-like sales up 4.6% in DKK, 1.6% in GBP.
• Good sales growth in international franchise stores; 6 new stores opened.
• International online progressed well; delivery network expanded to 67 countries; German website launched.
Gross margin for the 52 weeks to 1 September 2012 is expected to be in line with guidance of 30 basis points lower than last year, largely due to a weather-related sales mix change towards health and beauty as well as higher concession sales resulting from our moves to add choice.
“We continue to invest in key areas of the business which will help to deliver sustainable, long-term sales growth whilst maintaining our strong cost discipline overall. These areas include product development in buying and merchandising, marketing, customer analytics and activities to support the rapidly growing multi-channel business.”
Taking into account the foregoing like-for-like sales performance and guidance for gross margin and costs, we anticipate that profit before tax for the 52 weeks to 1 September 2012 will be ahead of last year and in line with current market expectations.
There has been no significant change to Debenhams' financial position since the interim results were announced on 19 April 2012. The business remains highly cash generative. In April 2012 we announced the commencement of a long-term share buyback programme. The initial tranche of £20 million was completed in August 2012.
Year-end net debt after the buyback is expected to be around £15 million lower than last year at c.£370 million.
Debenhams
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