We’re rising to challenge, says chief
DEPARTMENT store Debenhams today said it had maintained sales and profit growth through the cold snap and “challenging” trading conditions.
The firm, which has outlets in Middlesbrough and Stockton, saw like-for-like sales rise 0.3% in the 26 weeks to February 27 - up from 0.1% after 18 weeks - despite some disruption from the snow.
The group also grew market share in menswear and childrenswear, although womenswear was dented by its shift from concessions to own-bought ranges.
The focus on own-bought products has temporarily dented sales growth but boosted profit margins, the company said.
Chief executive Rob Templeman said he was pleased with the company’s first half performance.
“Against the backdrop of challenging trading conditions, we have delivered profit growth on a consistent basis for the past 18 months,” he said.
“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.”
The firm has been dogged by concerns about its borrowing since returning to the stock market in 2006. But today it said year-end net debt is expected to be within the range of market forecasts.
The group opened four new stores in the six months to February, including a flagship department store in Newcastle and three new Desire by Debenhams stores in Kidderminster, Monks Cross in York, and Witney, Oxfordshire.
In addition, new international franchise stores were opened in Iran and Vietnam, while major refits in Glasgow and Manchester are now under way as part of the group’s UK store refurbishment programme.
