Department chain store Debenhams publishes full year results
Department chain store Debenhams has today published its full year results, which revealed a rise in profit despite a difficult second half of the year.
The results for year ended 3 September 2016 showed an increase in underlying profit before tax of 0.5% to £114.1m from £113.5m, which was in line with market expectations.
The company has put this ‘solid’ growth down to the progress made in its strategic priorities, with planned growth in non-clothing categories leading to strong performances in beauty, gift, swimwear and food. It has also made improvements to its mix of markdowns and full price sales and delivered on tight stock management.
Multi-channel performance has been strong for the retailer, with online sales up 9.3%, which represents 14.7% of Group sales, and its online EBITDA is up 14.0%.
Chairman of Debenhams, Sir Ian Cheshire, said in a statement: “We have delivered profits in line with market expectations, reflecting a strong performance over peak followed by a tougher second half trading environment. Our strategy to rebalance the business towards non-clothing has supported our performance, with strong progress in Beauty, Gifting and Food.
“Our diversified business model, together with good cash generation and reducing debt means that Debenhams is in good shape to withstand a market background that remains uncertain. Our Executive team, supported by all our colleagues, are actively managing the business to increase its resilience and flexibility, which will stand us in good stead to deliver long term sustainable growth.”