Debenhams profit plunges 84 per cent after storm
In this article (4)
Debenhams profit plunged 84 per cent in the half year to March 3.
The UK department store operator says its like-for-like sales fell 2.2 per cent during “challenging conditions” in its home market. Its pre-tax profit fell from £87.8 million in the same period last year to £13.5 million.
The company said a major contributor to its falling sales was the forced closure of about 100 stores after a major storm hit the UK in February. Christmas sales were also down.
“We approach the remainder of the year mindful of the very challenging market conditions, but with confidence that we have a strong team and the right plan to navigate them and return Debenhams to profitable growth,” said CEO Sergio Bucher in a statement.
“It has not been an easy first half and the extreme weather in the final week of the half had a material impact on our results,” he said.
Questions & Answers
Q.What was the specific profit figure for Debenhams during this half-year period?
What was the specific profit figure for Debenhams during this half-year period?
Debenhams' pre-tax profit for the half year to March 3 was £13.5 million. This represents a significant fall from the £87.8 million reported in the same period last year.
Q.What were the main reasons given for the decline in Debenhams' sales and profit?
What were the main reasons given for the decline in Debenhams' sales and profit?
The company primarily attributed falling sales to the forced closure of around 100 stores due to a major storm in February. Also, Debenhams experienced a decline in Christmas sales.
Q.How much did like-for-like sales decrease in Debenhams' home market?
How much did like-for-like sales decrease in Debenhams' home market?
Debenhams reported that its like-for-like sales in the UK market fell by 2.2 per cent during what the company described as “challenging conditions”.
Reader pulse
Debenhams' strategy to return to profitable growth is:
22,810 votes so far
Tags