UK department store chain Debenhams has reported a slight rise in sales for the most recent quarter but cautioned that the trading environment in the UK had become more volatile.
The company, Britain's second-biggest department store operator, reported a 0.9 per cent increase in like-for-like sales in the 15 weeks to 17 June.
It said that it still anticipates 2017 profit before tax would be within the range of its previous expectations, but also said that "the outcome could be towards the lower end of the current range” if current market volatility continues.
"As industry data has confirmed, May was a tough month for retailers and we continue to see volatility in trading week to week,” said Debenhams CEO Sergio Bucher.
But he added that a new strategy announced by the company in April, aimed at cutting costs and becoming a digital shopping destination, was on track.
During 15-week period, Debenhams said that sales in beauty, accessories and food and drink had helped to mitigate the impact of a weaker clothing market. Food sales rose 5 per cent. Internationally, positive growth in Denmark, meanwhile, was offset by weaker trading in the Middle East and the Republic of Ireland.
Retailer like Debenhams have battled serious headwinds in recent years, made worse by the slump in the pound since Britain’s vote to leave the EU a year ago, and Julie Palmer, a partner at consultant Begbies Traynor, said that the latest results would likely do little to reassure shareholders.
“Although new CEO Sergio Bucher’s strategic review and ambitious plans to make the Group a “Social Shopping” leader are starting to have a positive impact on digital sales, it’s still going to take a long time to make Debenhams relevant with customers again, and drive real sales growth across the business,” she said.
