Debenhams: stiff competition and disappointing forecasts
(CercleFinance.com) - The Debenhams share has collapsed this morning on the London Stock Exchange, down around 18% after the British department store group released disappointing forecasts.
This morning the group gave a trading update for the 17-week period (just over four months) to 30 December 2017. At constant stores, sales decreased by 1.8%, including -2.6% in the UK and 2.1% internationally.
Admittedly, during the six weeks including Christmas, the trend was positive (+1.2%), although a number of special offers were necessary.
This will reduce the group's gross margin in the first half (Debenhams' fiscal year ends in August) by about 150 basis points. In addition, the company said that the first week of sales following Christmas was below expectations.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
This morning the group gave a trading update for the 17-week period (just over four months) to 30 December 2017. At constant stores, sales decreased by 1.8%, including -2.6% in the UK and 2.1% internationally.
Admittedly, during the six weeks including Christmas, the trend was positive (+1.2%), although a number of special offers were necessary.
This will reduce the group's gross margin in the first half (Debenhams' fiscal year ends in August) by about 150 basis points. In addition, the company said that the first week of sales following Christmas was below expectations.
Copyright (c) 2018 CercleFinance.com. All rights reserved.