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Debenhams sees sales and profits up
Debenhams has reported sales, gross margin and profit all up in the half-year to 27th February.
Gross transaction value was 1.7% higher than in the same period the previous year, Debenhams said, adding that like-for-like sales were up by 0.3 per cent.
The retailer said a significant strand of its margin expansion strategy is to increase sales of own bought products whereby higher own bought margins more than offset lower own bought sales densities. In the fourth quarter of last year it undertook extensive in-store space moves to create space for both new and expanded own bought brands by reducing concession space. It estimates that there is a detrimental impact on like-for-like sales resulting from these moves of some 1.5% throughout the current financial year.
Rob Templeman, CEO, said: 'We are pleased with our first half performance which shows continued progress in delivering our strategy. In 2009 we were one of only a handful of retailers to increase sales, margins and profits and we have done so again in the first half of 2010. Against the backdrop of challenging trading conditions, we have delivered profit growth on a consistent basis for the past 18 months.
'In the second half we will continue to focus on our self-help measures. The impact of the disruption we saw in the fourth quarter of last year due to the closure of concessions and the significant space shift will start to dissipate and we expect to benefit from enhanced space productivity in the second half from our new brands. Our strong own bought offer, not least the successful and exclusive Designers at Debenhams brands which bring the catwalk to the high street, will remain our key driver of growth.'
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