FINANCIAL HIGHLIGHTS
- Total sales up 2.6%
- UK segment sales up 2.6%
- International segment sales up 2.7% including franchise stores up 17.2%
- Group like-for-like sales up 2.3% including VAT, up 1.6% excluding VAT
- Group statutory revenue up 2.5%
- Group online sales up 39.8%
- Gross margin percentage down 30 basis points in line with guidance
- Group operating profit unchanged at 175.0m
- Group profit before tax up 4.2% to 158.3m
- Basic earnings per share up 14.0% to 9.8p
- Net debt improved by 15.0m to 368.7m after 20.1m share buyback
- Final dividend up 15.0% to 2.3p; full year dividend up 10.0% to 3.3p
- Share buyback to continue with up to 40m over next 12 months
OPERATIONAL HIGHLIGHTS
- Continued progress against the four pillars of our strategy
- 18 UK stores modernised, on track to modernise all outstanding stores
- Expansion of UK regional footprint, 2 new stores adding 170 new jobs
- Investment in brand and product ranges to enhance customer offer
- Further international expansion, entering 2 new territories and 7 new stores
- Market share gains achieved across key product categories, especially non-clothing
- Continued innovation in multi-channel: launch of Endless Aisle, free wi-fi in all stores
- Confidence in strategic delivery leads us to raise targets for online and international operations
- Medium-term target for online sales raised from 500m to 600m
- Five year target for total franchise stores increased from 130 to 150
Michael Sharp, Chief Executive of Debenhams, said:
"We have made good progress in 2012, achieving higher sales and earnings growth despite a very difficult market. I believe the strong sales momentum we achieved in the second half of 2012 is clear evidence that our strategy to build a leading international, multi-channel brand is working and this has prompted us to be more ambitious with our medium-term targets for the growth of our online and international operations.
"Looking forward, we believe that customers are acclimatised to the new economic reality. Whilst we don't anticipate a significant change in the economic environment in 2013, we expect to make further progress during the year. We will always manage cash, costs, stocks and margins closely but we are committed to continue prudent investment in key areas to deliver long-term sustainable growth as well as further returns of capital to drive shareholder value."
