The beat is down to the 53rd week contribution, we believe, which management expects to add £5-7m in profit, higher than previously thought.
Management expects 53-week full year profit before tax to be ahead of consensus of £158m, according to the company within the range of £160-165m.
RICHARD HUNTER HARGREAVES LANSDOWN
Gross margin remains under some pressure, but the company has made strides on several fronts in improving its outlook. There has been significant growth from its multi-channel sales, whilst its diversification is also reaping dividend. Debenhams still seems set on an on an improving trajectory; the shares are a buy.
MATTHEW MCEACHRAN | SINGER CAPITAL MARKETS
The pre-close interim management statement indicates that Debenhams’ performance was considerably better in the final period than many had feared. This means that full year profit before tax will be slightly higher than market expectations, including on an adjusted 52-week basis. With market share gains and strong cash generation, Debenhams should stand-out today given its valuation, on just 6x and with a yield of over six per cent. Expect a bounce.