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Debenhams toughs it out
Archived article dated Tuesday January 6th 2009
Net debt remains in line with management targets.
For the 18 weeks ended 3 January 2009, gross transaction value was 0.6 per cent above the comparative period last year. Like-for-like sales for the 18 weeks were 3.5 per cent lower than last year. Profit before tax and EBITDA for the 18 week period were both up on last year due to the increase in gross transaction value, the continuing tight management of costs and stocks with total stock levels closing 7.3 per cent below last year, representing a stock density reduction of 13.4 per cent. Terminal stocks are forecast to be at 'near historical low' for the half year.
The results are better than many in the city were expecting. Analysts were expecting Debenhams to announce a like-for-like fall in sales of up to 5 per cent in the 18 weeks to 3 January. Debenhams had discounted heavily in the pre-Christmas trading period and this had raised questions about margins.
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