Debenhams has reported another move in gains and sales after freezing weather in late February temporarily closed 100 storages in the UK.
The retailer enunciated like-for-like marketings fell by 2.2% in the 26 weeks to 3 March, while revenue sank 84% to PS13. 5m.
The retailer also lowered promises for annual gains and did its chief financial officer was leaving .~ ATAGEND
The cold weather too reached the wider retail sell, with UK sales volumes descending 1.2% in March, figures show.
For the first three months of 2018, sales volumes were down by 0.5% in comparison with the previous one-quarter the Office for National Statistics( ONS) told – the most difficult quarterly twilight since the first three months of 2017.
Debenhams replied gains for the full time would now be at the lower end of brokers’ forecasts of PS50m to PS61m, compared against PS95. 2m for the previous year.
It also announced that its chief financial officer, Matt Smith, had vacated to join competitive Selfridges.
Shares in the company fell nearly 10% in morning trading before regaining to be 1.1% lower at 23 p.
While Debenhams was affected by the extreme cold caused by the “Beast from the East”, the retailer had already been struggling.
It issued in a profit warning in January after frustrating Christmas trading, and in February the company said it planned to cut 320 accumulate handling jobs in an attempt to cut costs.
Chief executive Sergio Bucher said it had “not been an easy first half” and that the retailer was concentrating on its Debenhams Redesigned strategy, which aimed to mitigate difficult trading conditions.
In the six-month period, sales of attractivenes concoctions and food has been increased, while it had maintained its market share for robe in a weak market, he said.
However, Nicholas Hyett, an analyst at Hargreaves Lansdown, said that despite rising online marketings and apparel holding up, perimeters had been “totally shot to pieces” because of heavy dismis and the fall in sterling.
“The Debenhams Redesigned strategy is assuring the group invest heavily to try and get itself back on an even ground, but that’s driving indebtednes upwards, and has eventually expenditure investors over half the interim dividend, ” he remarked.
“The worry is that this is too little too late. Store improvements may get some patrons back into browses, but it won’t do anything to offset the broader switch away from the High Street.”
The 1.2% dropped in retail sales in March reported by the ONS was bigger than expected as the exceptionally cold weather kept buyers at home.
Samuel Tombs of Pantheon Macroeconomics added retail sales were already sustaining before the bad weather struck, with median loudness in January and February down 0.2% on the above figures for the last three months of 2017.
However, he lent: “Sales should rebound in April as beings jump-start back in their vehicles and finally started to buy spring clothing.”
Debenhams is exploiting its new Stevenage store as a “test lab”, Mr Boucher said, with a less costly and more flexible operating model.
Sales at its four nutrient stores, to be incorporated first Nando’s, had far excess hopes, the chief executive told, accounting for almost a third of marketings at the store.
Debenhams has revamped its Uxbridge store in west London along similar boundaries to Stevenage, boosting sales. The length of the accumulation has been cut by a fifth, with a similar reduced by rent.
Last month, Mike Ashley’s Sports Direct revealed that it had a stake of almost 30% in Debenhams – simply below the level at which it would be required to make a merger offer.