Debenhams posts slight dip in sales and warns of volatile trading environment
The company, Britain’s second-biggest department store operator, reported a 0.9 per cent dip in like-for-like sales in the 15 weeks to 17 June
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Debenhams reported a slight dip in sales for the most recent quarter and cautioned that the trading environment in Britain had become more volatile.
The company, the UK’s second-biggest department store operator, reported a 0.9 per cent decline in like-for-like sales in the 15 weeks to 17 June.
It said that it still anticipated profit before tax this year would be within the range of its previous expectations, but also said that “the outcome could be towards the lower end of the current range” if current market volatility continues.
“As industry data has confirmed, May was a tough month for retailers and we continue to see volatility in trading week to week,” said Sergio Bucher, chief executive of Debenhams.
But he added that a new strategy announced by the company in April, aimed at cutting costs and becoming a digital shopping destination, was on track.
During the 15-week period, Debenhams said that sales in beauty, accessories and food and drink had helped to mitigate the impact of a weaker clothing market. Food sales rose 5 per cent. Internationally, positive growth in Denmark was offset by weaker trading in the Middle East and the Republic of Ireland.
Retailers like Debenhams have battled serious headwinds in recent years, made worse by the slump in the pound since Britain’s vote to leave the European Union, and Julie Palmer, a partner at consultancy Begbies Traynor, said that the latest results would likely do little to reassure shareholders.
“Although new CEO Sergio Bucher’s strategic review and ambitious plans to make the group a ‘social shopping’ leader are starting to have a positive impact on digital sales, it’s still going to take a long time to make Debenhams relevant with customers again, and drive real sales growth across the business,” she said.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments