Home / Knowledge / News / Fashion / Designers at Debenhams ranges deliver good sales growth
Designers at Debenhams ranges deliver good sales growth
23
Mar '09
Debenhams plc, the leading department stores group, releases its trading update for the 26 weeks ended 28 February 2009. Gross transaction value for the 26 weeks ended 28 February 2009 was 0.3% higher than the prior year despite challenging trading conditions across the retail sector.

Debenhams has continued to take market share from its competitors in all major product categories, a positive trend which has now prevailed for 18 months. Excluding VAT, like-for-like sales for the period were 3.6% lower than last year.

Own bought ranges and particularly Designers at Debenhams ranges have delivered good sales growth and further progress has been made in our strategy to increase own bought participation. The strength of own bought sales has contributed to a positive movement in gross margin and we expect gross margin for the first half to be higher than last year.

The combined impact of higher gross transaction value and gross margin with the continuing tight management of costs and stocks alongside management's focus on the levers that drive cash margin will result in first half profit before tax and EBITDA being ahead of the previous year.

A strong focus on stock management has also resulted in terminal stocks being at a historically low level at the end of the first half. Our strategy of improving the consumer experience through the rationalisation of some of our ranges has also led to a significant reduction in stock densities.

Debenhams continues to generate strong cash flows and net debt at the end of the half was lower than the prior year. Since the end of the first half, we have taken the opportunity to acquire a quantity of stock and fixtures and fittings from the administrators of Principles as well as a licence to trade the brand. This will ensure continuity of supply to our business and accords with our intention to increase the own bought sales mix. Whilst the exact quantity of stock acquired is currently being finalised, we believe that this purchase will be beneficial for our business.

Commenting on the first half, Rob Templeman, CEO of Debenhams, said: “We are pleased with our performance during the first half of the year given the extremely difficult trading conditions experienced across the high street. We have continued to grow our top line and to take market share as consumers increasingly recognise the great value in terms of quality, price and design that our products and especially Designers at Debenhams deliver.”

“We have said previously that our main focus is on cash profit rather than just sales and our increase in profits during the first half despite the environment is testament to this aim and to the close management of resources throughout the business.” “Visibility for the second half remains poor and we will continue to run Debenhams in the expectation that the trading environment will remain challenging.”

Debenhams is a leading department stores group with a strong presence in key product categories including Womenswear, Menswear, Childrenswear, Home and Health and Beauty.

Debenhams plc


Must ReadView All

China reportedly cancels trade talks with US, Liu He visit

Apparel/Garments | On 22nd Sep 2018

China reportedly cancels trade talks with US, Liu He visit

Washington is reportedly positive about arriving at a solution to its ...

AmCham Cambodia cautions US against possible sanctions

Apparel/Garments | On 22nd Sep 2018

AmCham Cambodia cautions US against possible sanctions

In a letter to US lawmakers, the American Chamber of Commerce...

Courtesy: ycloset

Apparel/Garments | On 22nd Sep 2018

Alibaba invests in clothes sharing platform Ycloset

Chinese garment sharing platform YCloset has completed an undisclosed ...

Interviews View All

Sonia Agarwal, Whitenife

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Manuj Terapanthi, Texaura

Manuj Terapanthi
Texaura

Transparent supply chain and fair trade will boost sustainable market

Top executives, Textile & apparel bodies

Top executives
Textile & apparel bodies

The mid-term review of FTP is progressive, growth oriented

Karan Behal,

Karan Behal

Karan Behal, founder and chief executive of top-selling brand...

Umang Banthia,

Umang Banthia

Established in 2005, SL Banthia Textiles manufactures coated fabrics....

Manoj Sorathiya,

Manoj Sorathiya

Surat-based Sunrise Imports & Exports Co is a manufacturer and...

Kai Poehler, Voith Paper GmbH & Co. KG

Kai Poehler
Voith Paper GmbH & Co. KG

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

Silke Brand-Kirsch, Schlegel und Partner

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Marcel Alberts, Eurofibers

Marcel Alberts
Eurofibers

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

Cigdem Akin, Cigdem Akin

Cigdem Akin
Cigdem Akin

She has carved a niche for herself as the national brand of Turkey. Her...

Adriano Goldschmied, AG Jeans

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

Rajesh Pratap Singh, Rajesh Pratap Singh

Rajesh Pratap Singh
Rajesh Pratap Singh

<div>Ace fashion designer <b>Rajesh Pratap Singh</b> has used Tencel to...

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

Leave your Comments


September 2018

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

news category


Related Categories:

Advanced Search