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Debenhams FY’13 global sales up 3.7 percent

By FashionUnited

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Fashion

REPORT_ For the 52 weeks to August 31, 2013, Debenhams gross transaction value (GTV) increased by 2.5 percent. Group revenue increased by 2.3 percent. For the UK segment, GTV increased by 2.3 percent and revenue grew by 1.9 percent.

This was principally a result of very strong growth in online sales, the benefit of the store modernisation program and the impact of new stores opened during 2012 and 2013.

For the international
segment, GTV was 3.7 percent higher than last year and revenue increased by 4.5 percent. Group like-for-like sales increased by 2 percent principally driven by growth in online sales of 46.2 percent. Online accounted for 13.2 percent of total sales in 2013, up from 9.3 percent in the previous year. International sales increased by 3.7 percent. Group gross margin was flat compared with the prior year. This reflected a good recovery in the second half of the year due to a combination of better intake margin and product mix. Group operating profit declined by 4 percent. This was mainly the result of a decline in UK operating profit of 3.1 percent due to bad weather in the first half of the year. In addition, international operating profit decreased by 8.1 percent.

Debenhams is based in the UK. It is a multi-channel brand which trades from 238 stores across 29 countries and is available online in 67 countries. It offers a mix of own brands, international brands and concessions. Debenhams is the eleventh biggest UK online retailer by traffic volume. In the UK, Debenhams has a top five market share in women’s wear and men’s wear and a top ten share in children’s wear. Debenhams grew market share in key clothing and non-clothing product categories during the year. The total clothing/footwear/accessories share increased by 20 basis points. Total basic and diluted earnings per share grew by 4.1 percent.

At the end of the year Debenhams operated from 235 stores in 27 countries and was available online in 67 countries. Since then, three new franchise stores have opened including two in new markets taking the total to 238 stores in 29 countries. The new store pipeline stands at 16 stores over the next four years. Michael Sharp, Chief Executive of Debenhams, said: “I am pleased with our performance in 2013 given the very difficult conditions. We gained market share in key categories. We continue to deliver growth and additional customer benefits. While consumer confidence may be showing signs of improvement, we expect household incomes will remain under pressure from inflation growing ahead of wages. We remain cautious about the strength and pace of any consumer recovery in 2014 and expect the marketplace to remain highly competitive.”


Debenhams