Financial headlines
Gross transaction value ("GTV") up 1.3%1 to £2,895.9m for 52 weeks, up 2.7% as reported
Group like-for-like sales up 0.7% in constant currency, up 0.6%1 as reported
Group gross margin rate down 10bps1, with 60bps markdown improvement on last year offset by sales mix
Group EBITDA down 2.2%1 to £233.4m (2015: £238.6m), up 0.5% to £239.7m as reported
Underlying profit before tax in line with market expectations, up 0.5% to £114.1m1,2 (2015: £113.5m),
up 4.1% as reported
Underlying earnings per share of 7.5p1,2 (2015: 7.6p)
Following good cash generation, net debt reduced by £40.8m to £279m. Net debt/EBITDA at 1.2x (2015: 1.3x), making progress towards medium term financial leverage target of 0.5x
Final dividend of 2.4p per share; full year dividend up 0.7% to 3.425p per share (2015: 3.400p per share)
Operational headlines
Progress in strategic priorities underpinned solid growth
o Planned growth in non-clothing categories has led to strong performances in beauty, gift, swimwear and food, which has helped to offset a weak clothing market
o Further improvement in markdowns and full price sales mix delivered despite a more promotional market background in the second half of the year
o Tight stock management delivered 4.2% reduction in like-for-like stock and clean terminal stock position in line with long-term average
Growth in mobile supported strong multi-channel performance. Online sales grew 9.3%, representing 14.7% of Group sales, with online EBITDA up 14.0%
International profit broadly maintained, with continuing progress at Magasin du Nord helping to offset tougher trading conditions in some franchise markets
Irish examinership process successfully completed, with this business now well-positioned for a sustainable and profitable future
Shanghai sourcing office opened in August 2016, marking the next phase of our drive towards a faster, more responsive supply chain to underpin our plans for international, multi-channel growth
Sir Ian Cheshire, Chairman of Debenhams, said:
"We have delivered profits in line with market expectations, reflecting a strong performance over peak followed by a tougher second half trading environment. Our strategy to rebalance the business towards non-clothing has supported our performance, with strong progress in Beauty, Gifting and Food.
"Our diversified business model together with good cash generation and reducing debt means that Debenhams is in good shape to withstand a market background that remains uncertain. Our Executive team, supported by all our colleagues, are actively managing the business to increase its resilience and flexibility, which will stand us in good stead to deliver long term sustainable growth.
Following the arrival this month of our new CEO, Sergio Bucher, we look forward to updating the market in Spring 2017 on our longer term plans for the next phase of Debenhams' development."
