Department store chain Debenhams says it is pushing on with its “Debenhams Redesigned” strategy amidst difficult trading conditions and fall in pre-tax profit of 30.6%.
In a trading update for the 26 weeks to the 3rd March, chief executive officer Sergio Bucher said the company expected “no help from the external environment”.
“We are focused on delivering our Debenhams Redesigned strategy, aiming to mitigate difficult trading conditions through self-help initiatives,” he said.
“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.”
Debenhams said it has strengthened its senior management with hires at all levels including a new managing director of its fashion and home division, while it had “delivered digital growth ahead of the market”.
Like-for-like sales declined 2.2%, although this was disrupted by severe weather conditions in the final trading week. Almost 100 stores are temporarily closing, which is estimated to have reduced LFL by 1.0% in the latest half.
It said it will continue new store format trials and intends to roll this out over 35% of its UK stores.
The department store said that full year profit before tax is expected to be at the lower end of the current range of broker forecasts of between £50m and £61m.
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