| | Debenhams plc, today announces its interim management statement for the 18 weeks to 7 January 2012.
Note: all comparisons relate to the 18 weeks to 7 January 2012 versus the 18 weeks to 8 January 2011 unless otherwise stated.
Group gross transaction value for the 18 weeks to 7 January 2012 increased by 0.5%. Group like-for-like sales increased by 1.4% including VAT and were level with last year excluding VAT. The online business, which is a key component of our multi-channel offer, delivered another strong performance with like-for-like sales increasing by 34.8%.
Overall, we are pleased with this good performance given the difficult trading conditions which have been experienced during the period. Warmer weather throughout October and November impacted the sales of seasonal product lines and uncertainty in the wider economy continues to have an adverse impact on consumer confidence. December trading was notably stronger with growth in Group like-for-like sales for the five weeks to 31 December of 6.5% including VAT.
Debenhams has continued to take a pragmatic approach to trading throughout the 18 weeks, focusing on maximising cash gross margin through management of promotional events and product mix. As a result, stock levels are firmly under control across all departments and terminal stock at the end of the first half is expected to be in line with historic levels. At this stage, gross margin guidance for the financial year is unchanged at flat.
One new store opened in Newbury during the 18 weeks taking the total to 170 stores in the UK, Ireland and Denmark. Two new international franchise stores were also opened, both in the Philippines, giving a total of 66 stores in 25 countries.
Except as detailed above, there have been no material events or transactions which have impacted the Group's strong financial position since the previously announced balance sheet dated 3 September 2011.
Michael Sharp, Chief Executive of Debenhams, said: "I am pleased with this performance. We traded well despite the difficult environment as evidenced by strong sales in December, including record sales in the final week before Christmas…"
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