Debenhams PLC Case Study
8 January 2013
DEBENHAMS PLC
INTERIM MANAGEMENT STATEMENT
Debenhams plc, the leading international, multi-channel brand, today announces its interim management statement covering the 18 weeks to 5 January 2013.
Highlights
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•
•
Good sales momentum: 18 weeks LFL sales up 2.9%
Highest ever December sales: five weeks to 5 January LFL sales up 5.0%
Online sales ahead of expectations: 18 weeks up 39.0%
Michael Sharp, Chief Executive of Debenhams, said:
“I am pleased with our performance in the first four months of our financial year. The trading environment was extremely challenging but we focused on meeting the needs of our customers and executing the four pillars of our strategy. I would like to thank the whole of the Debenhams team for their tremendous efforts in delivering this performance.
“We continue to believe that whilst consumers have become acclimatised to the new economic
reality, we don’t anticipate a significant change in consumer confidence in the remainder of the year. We remain committed to prudent investment in key areas of the business to deliver long-term sustainable growth as well as driving shareholder value.”
Debenhams continued to see good sales growth during the 18 week period, building on the momentum with which we exited last year. Group gross transaction value increased by 3.5% for the period whilst Group like-for-like sales grew by 2.9%.
With Christmas falling on a Tuesday this year, it was widely expected that customers would focus their shopping activities later in the season and this proved to be the case with Debenhams achieving its highest ever sales in December. Despite strong comparisons from last year, like-for-like sales over the five weeks to 5 January 2013 increased by 5.0% on a one year basis and by 8.5% on a two year basis.
The UK high street was more promotional than the prior year, with customers looking for bargains ahead of Christmas as well as in the traditional sale period. We traded
DEBENHAMS PLC
INTERIM MANAGEMENT STATEMENT
Debenhams plc, the leading international, multi-channel brand, today announces its interim management statement covering the 18 weeks to 5 January 2013.
Highlights
•
•
•
Good sales momentum: 18 weeks LFL sales up 2.9%
Highest ever December sales: five weeks to 5 January LFL sales up 5.0%
Online sales ahead of expectations: 18 weeks up 39.0%
Michael Sharp, Chief Executive of Debenhams, said:
“I am pleased with our performance in the first four months of our financial year. The trading environment was extremely challenging but we focused on meeting the needs of our customers and executing the four pillars of our strategy. I would like to thank the whole of the Debenhams team for their tremendous efforts in delivering this performance.
“We continue to believe that whilst consumers have become acclimatised to the new economic
reality, we don’t anticipate a significant change in consumer confidence in the remainder of the year. We remain committed to prudent investment in key areas of the business to deliver long-term sustainable growth as well as driving shareholder value.”
Debenhams continued to see good sales growth during the 18 week period, building on the momentum with which we exited last year. Group gross transaction value increased by 3.5% for the period whilst Group like-for-like sales grew by 2.9%.
With Christmas falling on a Tuesday this year, it was widely expected that customers would focus their shopping activities later in the season and this proved to be the case with Debenhams achieving its highest ever sales in December. Despite strong comparisons from last year, like-for-like sales over the five weeks to 5 January 2013 increased by 5.0% on a one year basis and by 8.5% on a two year basis.
The UK high street was more promotional than the prior year, with customers looking for bargains ahead of Christmas as well as in the traditional sale period. We traded