Debenhams on track to meet full year expectations

Debenhams said it remained on track to deliver full year results in line with market expectations despite a sluggish sales performance in the third quarter.

The department store said sales were flat over the 15 weeks to June 13, versus analysts’ third quarter forecasts of a 2% drop.

The performance follows a first half growth of 1.3%, which was driven by a shift in Debenhams’ New Season Spectactular to H1, resulting in three fewer days of special offers in the latest quarter.

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But the retailer said its gross margin for FY15 remains unchanged and it expects to achieve an annual pre-tax profit of £111m.

Debenhams CEO Michael Sharp said: "We have made good progress on our strategic priorities, and remain on track to deliver results in line with market expectations. During this period we have continued to focus our promotional activity around the events Debenhams is famous for; we have made further improvements to our multi-channel proposition, including more competitive delivery charges; we have commenced further space trials with a number of exciting new partnerships; and have seen continued progress in our international operations.

"Our customers tell us that, whilst they recognise the improving economic background, they remain cautious in their spending. Our wide product choice, clear destination departments and improving service proposition gives us a strong platform from which to deliver long term sustainable growth.”



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