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Debenhams lays the grounds for bland quarterly figures

By Angela Gonzalez-Rodriguez

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Debenhams is set to report its third-quarter results on June, 22, right before the Brexit referendum took place. The market expects stagnant figures.

Debenhams is expected to report little changed figures given the department stores operator’s struggles results on Wednesday as it struggles to keep up with high street competitors.

The retailer anticipates like-for-likes to remain flat for the third quarter as a result of pressures from clothing price deflation and falling shopping centre footfall.

In this regard, Stifel’s analyst James Collins noted Monday that group could see sales fall as it takes a hit from "fire sales" at BHS.

"March and April were difficult for the clothing market and while the weather was more supportive in May, industry data suggest ongoing sales declines and significant deflation," Summed up Collins in a research note.

"Footfall data also suggest weak shopping centre and high street trends." "Hence, against a relatively good third quarter last year, we expect Debenhams to report a group like-for-like decline of -1 percent to -2 percent" Collins added.

Debenhams has enjoyed a 5.5 percent rise in group pre-tax profits to 93.8 million pounds to February, 27.

On another note, Debenhams chief executive Michael Sharp will step down from his role on June, 24 after leading the company for the past five years.

Debenhams