THE RETAIL BULLETIN - The home of retail news
HOME
RETAIL NEWS
RETAIL EVENTS
Fashion
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Electricals
Health & Beauty
General Merchandise
Entertainment
Sports & Leisure
Retail Solutions
Food & Drink
Interviews
RETAIL INSIGHTS
RETAIL SOLUTIONS
ABOUT US
CONTACT US
SUBSCRIBE FOR FREE
Debenhams issues profit warning

The Debenhams department store chain has issued a profit warning after reporting that its UK business was severely disrupted by snow in January.

GENERAL MERCHANDISE

Debenhams issues profit warning

The Debenhams department store chain has issued a profit warning after reporting that its UK business was severely disrupted by snow in January.

In a trading update issued today, Debenhams said that while group like-for-like sales grew by circa 3% in the 26 weeks to 2 March 2013, like for-like sales were down around 10% in the snow affected period of 14 to 27 January.

The retailer added that promotional events in February did not fully recover the sales lost to the snow and that sales were mainly in lower margin clearance lines.  As a result gross margin for the first half will be circa 20 basis points lower than last year with gross margin for the year now more likely to be flat than the 10 basis points increase previously guided to.

Debenhams now thinks that first-half profits will be about £120 million, which is less than hoped. However, the retailer said that its forecasts for the second half were "robust", with sales continuing to grow as expected.

Michael Sharp, chief executive of Debenhams, said: "Whilst the impact of the snow on the outcome for the first half is disappointing, it is now behind us and sales volumes have recovered.  We are confident in our spring/summer ranges and that we can grow sales in the second half.   Our strategy to build a leading international, multi-channel brand remains on track and we continue to focus on the four pillars of the strategy and investing in our business for long-term, sustainable growth."

Debenhams will report its results for the 26 weeks to 2 March 2013 on 18 April 2013.  







 

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

Omnichannel Futures Conference 2019
Omnichannel Futures Conference 2019
6 February 2019
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Summit
The HR Summit 2019
The HR Summit 2019
Tuesday 8 October 2019
The Cavendish Conference Centre, London W1
The 11th HR Summit 2019, The Cavendish Conference Centre, London W1, 8 October 2019
AI in Retail Conference 2019
AI in Retail Conference 2019
16 October 2019
Cavendish Conference Center, 22 Duchess Mews, London W1G 9DT
Digitally native competitors and demanding customers are forcing a new perspective in retail. AI and machine learning can help you step up to the challenges; and some ‘small and beautiful’ solutions can increase your conversion rates within just a few weeks.
Payment Roundtable 2019
Payment Roundtable 2019
6 February 2019
The Cavendish Conference Centre, 22 Duchess Mews, London W1G 9DT
The Retail Bulletin Payment Roundtable will raise debate and discussion centred on but not exclusive to improving the in-store payment process