Debenhams like-for-like Christmas sales rise 3.5 percent

Debenhams Group like-for-like sales increased over 3.5 percent in constant currency and over 1.9 percent as reported during the Holiday season to January 9, 2016. Online sales were up 12.1 percent and click & collect penetration increased to 31percent.

"We have traded well in the first 19 weeks of the financial year with a strong performance over peak resulting in a record Christmas,” said Michael Sharp, Chief Executive of Debenhams, adding, “This performance is evidence that our strategy is working with our customers finding our mix of products and brands both compelling and great value for money. The further improvements to our service proposition and our online presentation have delivered strong multi-channel sales growth, building on the progress we saw last year.”

Christmas trading highlights

The company said that less discounting and a lower level of promotional activity led to full price sales growth of 5 percent, supported by planned reduction in stock levels across clothing, particularly in weather-sensitive categories. Black Friday, Debenhams said, traded successfully and profitably with good year on year growth both in stores and online. As planned, five new stores were opened between September and November 2015 in Bradford, Wandsworth, Rugby, Beverley and Newport.

Internationally, Debenhams performed in line with expectations, with Magasin du Nord in Denmark delivering a record Christmas and further strong momentum in constant currency.

Performance in the first half to date

In the 19 week period, Group gross transaction value rose by 2.5 percent, with like-for-like growth of 3.5 percent in constant currency, 1.9 percent as reported. Online sales delivered continuing positive momentum in the 19 week period, growing 12.1 percent and with stronger growth over peak. Click & collect penetration continued to increase, growing at 45 percent year on year and accounting for 31percent of online orders in H1 to date.