BETHANY HOCKING INVESTEC
Management emphasise the impact of snow, but we see this as more of a gross margin and cost issue. Potential over-optimistic buying for second half concerns us and as a result our new 2013 gross margin assumption is below guidance.
KATE CALVERT CANTOR FITZGERALD
While snow would undoubtedly have had an effect, this is the second downgrade this year, which makes us believe management is trading the business too aggressively for the current consumer environment.
JONATHAN PRITCHARD ORIEL SECURITIES
While this is a disappointing result, we believe that management continues to pursue the right strategy here. Carefully targeted ranges are being appropriately priced and Debenhams continues to take market share.