Debenhams sees sales dip
DEBENHAMS has posted a fall in underlying third-quarter sales but said it was winning market share and its gross margins were rising.
Sales at stores open over a year fell 0.4 percent in the 42 weeks to 19 June.
Debenhams, with about 160 stores in Britain and Ireland and more than 50 franchised outlets overseas, said gross transaction value increased 1.1 per cent over the period, excluding the impact of Danish department store Magasin du Nord that was acquired last year.
The firm said market share gains were particularly strong in menswear and childrenswear, up 20 basis points and 40 basis points respectively.
Debenhams said its gross margin performance was “strong” and forecast a rise for its full year ahead of previous guidance of up 80 basis points, excluding Magasin.
The group said it remained cautious about the outlook for consumer confidence but forecast “further progress” over the coming year.
It added that it expected to complete a refinancing of its debt facilities in the next few weeks.
Shares in Debenhams have fallen 28 percent over the last three months, underperforming a ten per cent fall in the UK general retailers index .FTASX5370.
The stock, which returned to the stock market at 195 pence a share in 2006 after two-and-a-half lucrative years in private equity hands, closed at 54.75 pence on Wednesday, valuing the business at £705m.