THE RETAIL BULLETIN - The home of retail news
Lest we forget
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 profits edge up 1.4%

Department store chain Debenhams increased its profits by 1.4% to £127.1 million for the six months to 3 March, compared to the same period last year.

CITY & CORPORATE

Debenhams profits edge up 1.4%

Department store chain Debenhams increased its profits by 1.4% to £127.1 million for the six months to 3 March, compared to the same period last year.

Revenue rose 1.3% to £1.23 million from £1.22 million the year before while like-for-like sales across the business increased by 1.4%.

Online sales grew by 34.7% to £124.3 million in the period with sales  up by almost 150% on a two year basis. Online EBITDA increased by 36.4% as the initiatives taken to improve profitability in the business, particularly in relation to fulfilment costs, began to take effect. 

Debenhams said it had continued to grow its multi-channel business by implementing a number of new intiatives which  included the deployment of kiosks across the entire store base. The company said that Mobile was now its fastest growing channel with 20% of online traffic now generated by mobile devices. 

The company has committed to modernising its 45 core stores in the UK and Ireland within the next two years, 20 of which will be carried out in the second half of the current financial year. Results from the 14 modernisations completed over the past 18 months have been encouraging with an average sales increase of around 6% and return on capital in the region of 15%.   
 
The company now operates 164 stores across the UK and Ireland, with one new store opening in Newbury during the six month period. Debenhams said it believes there is potential for 240 "economically viable" stores. 

Chief executive Michael Sharp said: "We are pleased with our results for the first half, with profit before tax ahead of market expectations despite the challenges presented by the overall retail climate and unfavourable weather conditions in the autumn.

"I set out the four pillars of our strategy to create a leading international, multi-channel brand in October last year. I am encouraged by the strong execution over the last six months and am confident of the long-term success of this strategy and the benefits it will bring to our business and our shareholders."

 

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

The Retail Design Seminar 2018
The Retail Design Seminar 2018
14 November 2018
The Cavendish Conference Centre
The Retail Design Seminar 2018
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
AI in Retail Conference 2019
AI in Retail Conference 2019
18 September 2019
Cavendish Conference Center, 22 Duchess Mews, London W1G 9DT
Retail marketing is changing pace rapidly by making communication across all platforms personalised, relevant, efficient, and helpful. AI not only helps shoppers find a perfect product but also pre-empts the shopping behaviour and speeds up payment.
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
Fix The Dinosaur Roundtable 2018
Fix The Dinosaur Roundtable 2018
19 October 2018
The Euston Suite, The Hallam, 44 Hallam St, London W1W 6JJ
A Masterclass in IBMi Legacy Issues