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Wednesday, June 22, 2016

Debenhams Optimistic Despite Sluggish Sales

Debenhams says it still expects to meet annual profit forecasts despite a dip in quarterly sales.
The department store chain has reported a 0.2% fall in like-for-like sales in the 15 weeks to 11 June, saying demand for clothes had been weak.
It said uncertainty within the UK trading market, particularly the clothing sector since the start of the year, contributed to the drop.
Despite the drop in third quarter sales, the company insists that full year pre-tax profits will be within the range of current market forecasts.
Under the direction of chief executive Michael Sharp, the retailer has developed its health and beauty categories and reduced its reliance on discounting and non-clothing sales and this has helped boost profits.
Mr Sharp will be replaced by Sergio Bucher, an Amazon fashion boss, when he steps down after five years at the helm on Friday.
He said he was leaving the company in very strong hands.
"Our strategy remains unchanged, with further progress in driving our non-clothing mix, continuing to improve service for multi-channel customers, and offering a wider choice in products and services," he said.

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