Department store firm Debenhams (DEB.L) today announced H1 results which were ahead of analysts expectations.
Over the period the group said that like-for-like sales were up 1.3% and pre-tax profit rose 4.3% to £88.9M ahead of analyst expectations of £84M.
Christmas also proved profitable for Debenhams (DEB.L), with a new online delivery options provided before the traditional Black Friday and Christmas shopping periods driving aa 12.7% increase in online sales over the period.
Despite the results, analysts still remain unimpressed with the long term outlook for the company with Investec still maintaining a SELL on the shares citing “little profit progression expected over the medium term”.
Michael Sharp, Chief Executive of Debenhams (DEB.L), said: ”I am pleased with the good progress we have made against the strategic priorities we set out last year. We have improved our multi‐channel offer and successfully introduced the premium delivery options that we promised for the important peak period, which met with a positive response from our customers. The continued refocusing of our promotional strategy delivered a strong increase in full price sales, an improvement in value perception and enabled us to end the half with an improved stock position. Overall we delivered a good first half performance despite a difficult clothing season in Autumn and we are on track to achieve full year expectations.
“Looking forward, our customers tell us they are feeling a little more optimistic about the economic outlook, but they remain cautious. Accordingly we are continuing to plan prudently in the near term, while remaining focused on our strategic priorities, and are continuing to invest to ensure that our business is well‐positioned to drive sustainable growth in the longer term.”
Shares in Debenhams (DEB.L) were up 5% this morning in early trading. Currently sitting around the 84p mark (+4p).
Department store firm Debenhams (DEB.L) today announced H1 results which were ahead of analysts expectations.
Over the period the group said that like-for-like sales were up 1.3% and pre-tax profit rose 4.3% to £88.9M ahead of analyst expectations of £84M.
Christmas also proved profitable for Debenhams (DEB.L), with a new online delivery options provided before the traditional Black Friday and Christmas shopping periods driving aa 12.7% increase in online sales over the period.
Despite the results, analysts still remain unimpressed with the long term outlook for the company with Investec still maintaining a SELL on the shares citing “little profit progression expected over the medium term”.
Michael Sharp, Chief Executive of Debenhams (DEB.L), said: ”I am pleased with the good progress we have made against the strategic priorities we set out last year. We have improved our multi‐channel offer and successfully introduced the premium delivery options that we promised for the important peak period, which met with a positive response from our customers. The continued refocusing of our promotional strategy delivered a strong increase in full price sales, an improvement in value perception and enabled us to end the half with an improved stock position. Overall we delivered a good first half performance despite a difficult clothing season in Autumn and we are on track to achieve full year expectations.
“Looking forward, our customers tell us they are feeling a little more optimistic about the economic outlook, but they remain cautious. Accordingly we are continuing to plan prudently in the near term, while remaining focused on our strategic priorities, and are continuing to invest to ensure that our business is well‐positioned to drive sustainable growth in the longer term.”
Shares in Debenhams (DEB.L) were up 5% this morning in early trading. Currently sitting around the 84p mark (+4p).
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