Friday, 28 October 2016

Debenhams' profit hit by falling clothes sales

Debenham

Debenhams has been reported a 10 per cent fall in annual pre-tax profit on Thursday in a sign of the challenge facing new chief executive Sergio Bucher as the nation's clothes shoppers cut back on spending.

Britain's second-largest department store chain by revenue has struggled in recent months as it battles a sector-wide fall in UK clothing sales and a dip in consumer confidence that has hit a number of high street chains.

It has responded by promising to shift its attentions to non-clothing sales, with a focus instead on beauty, gift and casual dining offerings.

On Thursday, Debenhams reported that total revenue fell 0.8 per cent, to £1.9bn, in the year to August 27, while pre-tax profit was down 10.4 per cent to £101.7m. Like-for-like sales edged up 0.6 per cent, however, and profits before exceptional restructuring costs rose 0.5 per cent — in line with market expectations.


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