Debenhams 2017 final results
Like-for-like sales ("LFL") grew 2.1% with UK LFL at 0.0%, reflecting growth in Destination categories; strong digital momentum; and a weaker H2 trading environment
Beauty sales grew by 5%; Food by 8%, whilst clothing declined by 0.5%, broadly in line with the UK market. Digital sales grew 12.7%, driven by mobile orders up 57% in the UK
Group gross margin rate declined 30 bps, in line with guidance. As expected, further 20 bps markdown improvement in the year was offset by sales mix dilution. Full price sales grew 1.7%
UK EBITDA declined 10.1% against a tougher trading background in H2 but mitigated by tight cost management. International EBITDA grew by 8.0%, with Magasin du Nord in Denmark having a solid year in a tougher trading environment, whilst our Irish business benefited from restructuring under examinership
Underlying profit before tax of £95.2m was in line with market expectations, before exceptional charges as guided in relation to Debenhams Redesigned strategy of £36.2m. Net debt improvement includes exceptional cash outflow of £15.9m
Continued cash generation and confidence in Debenhams Redesigned strategy supports maintained final dividend of 2.4p per share, making a total dividend of 3.425p per share.
