Takeover Panel
14 October 2003

2003/23

OFFERS BY

LARAGROVE LIMITED ('LARAGROVE')

AND

BARONESS RETAIL LIMITED ('BARONESS')

FOR

DEBENHAMS PLC ('DEBENHAMS')




On 4 August, Laragrove posted an offer to Debenhams' shareholders. On 29 September, Baroness posted an offer to
Debenhams' shareholders, such offer to be implemented by way of a scheme of arrangement. Neither offer has yet been
declared final and either offer may therefore be increased or otherwise revised.

In order to provide an orderly framework for resolution of the competing offers and in accordance with Rule 32.5, the
Panel Executive has ruled, following discussions with the parties, that except with the consent of the Panel
Executive:


if either Laragrove or Baroness wishes to revise or increase its offer (other than in
accordance with the following procedure) after 5.00 p.m. on Thursday 30 October then that
bidder must lodge any increased offer with the Panel Executive by 4.00 p.m. on Friday 31
October (the 'Auction Start Date'), such increased offer to be announced at approximately 5.00
p.m. that day;


if the bidder with the lower offer at 5.00 p.m. on Thursday 30 October, or if both bidders,
announce(s) an increased offer by approximately 5.00 p.m. on the Auction Start Date then an
open auction procedure shall begin and the bidder with the lower offer following such
announcement(s) shall have until 4.00 p.m. on Saturday 1 November to lodge an increased offer
with the Panel Executive, such increased offer to be announced at approximately 5.00 p.m. that
day;


if the bidder with the lower offer after the announcement(s) at approximately 5.00 p.m. on the
Auction Start Date, or if both bidders, announce(s) an increased offer on Saturday 1 November,
the bidder which then has the lower offer outstanding shall have until 4.00 p.m. on Sunday 2
November to lodge an increased offer with the Panel Executive, such increased offer to be
announced at approximately 5.00 p.m. that day. If the bidder with the lower offer after the
announcement(s) at approximately 5.00 p.m. on Saturday 1 November, or if both bidders,
announce(s) an increased offer on Sunday 2 November, the lower bidder shall have until 4.00
p.m. on Monday 3 November to lodge an increased offer with the Panel Executive, such increased
offer to be announced at approximately 5.00 p.m. that day;


if such an increased offer is announced on Monday 3 November, then the open auction procedure
shall cease to operate. Both bidders shall be invited to submit sealed bids to the Panel
Executive by 1.00 p.m. on Tuesday 4 November specifying a fixed maximum price that each bidder
is prepared to pay. Formula offers will not be permitted. An announcement by the bidder
with the highest offer will, unless otherwise agreed by the Panel Executive, be released by
5.00 p.m. that day;


if, during the open auction, the bidder with the lower offer does not lodge an offer with the
Panel Executive by 4.00 p.m. the next day or if a party is the under-bidder in the sealed bid
process (as appropriate) then that bidder will not be able to amend its offer thereafter;


a further announcement will be made regarding the offer timetable once the above process has
been completed; and


the Panel Executive reserves the discretion to amend the above procedure as appropriate.



Each of the parties has accepted this ruling.

14 October 2003

Broker upgrade...

0604 GMT [Dow Jones] Morgan Stanley upgrades Debenhams (DEB.LN) to overweight from equalweight, based on valuation. "A combination of higher forecasts and the industry re-rating means we now wee significant upside potential even if Debenhams undertakes a rights issue." Estimates shares are worth 110p should the group raise GBP400M. Adds shares could be worth 160p if the capital raising proves unnecessary. Says downside risks are decreasing. Notes management still have plenty of strategic levers to pull. Lifts price target to 112p from 63p. Shares closed at 83.5p. (KAV)

Another upgrade....

28-Apr-09 Debenhams DEB UBS Buy 87.00p 60.00p 115.00p Upgrade

And we have more brokers recos...

24-Apr-09 Debenhams DEB Investec Securities Buy 88.00p - - Upgrade
24-Apr-09 Debenhams DEB Deutsche Buy 88.00p - - Upgrade
24-Apr-09 Debenhams DEB Nomura Buy 88.00p - - Upgrade

Gone back long on Debenhams broker upgrade out this afternoon. SP target of 115p.

BRIEF-RESEARCH ALERT-HSBC initiates coverage of 6 UK retailers
07 Oct 2009 - 07:09

Oct 7 (Reuters) - UK MID-CAP RETAILERS: *

HSBC cuts Topps Tiles Plc to neutral from overweight *
HSBC starts Asos PLC with overweight rating; price target of 435P *

HSBC starts Debenhams Plc with overweight rating; price target of
115P *

HSBC starts Mothercare PLC with overweight rating; price target of

700P * HSBC starts Sports Direct International Plc with overweight rating;
price target of 155P

* HSBC starts Ted Baker PLC with overweight rating; price target of 550P
*
HSBC starts Carpetright PLC with underweight rating; price target
of 700P

:) :cool:

results due 22nd of October 2009.

Impressive list of Brokers following this stock.....

and derd cheap on a forward P/E of just under 10 going into 2010.

Debenhams PLC


FORECASTS
2009 2010

Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)


Investec Securities
05-10-09 BUY 122.00 10.19 135.00 7.55 1.00

KBC Peel Hunt Ltd
05-10-09 BUY 121.30 10.34 140.82 7.77

Singer Capital Markets Ltd
05-10-09 BUY 133.30 10.10 144.40 8.10

Shore Capital
02-10-09 BUY 121.80 6.60 130.80 7.10 0.90

Seymour Pierce
18-09-09 HOLD 122.00 10.10 135.00 7.80

Nomura Research Institute
15-09-09 BUY 10.07 7.63

Altium Securities
15-09-09 HOLD 125.50 10.40 143.60 7.90

Arden Partners
15-09-09 BUY 118.50 9.00 129.00 7.20 2.00

Oriel Securities
15-09-09 BUY 122.00 10.10 0.50 145.00 7.50 0.50

Numis Securities Ltd
15-09-09 ADD 126.00 7.10 141.90 8.10

Pali International
21-08-09 NEUT 125.00 7.00 2.70 145.00 8.00 2.90

Panmure Gordon
19-06-09 SELL 89.95 7.42 2.00 84.28 6.95 2.00


2009 2010
Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Consensus 123.92 10.11 0.07 139.05 7.82 0.34
1 Month Change 1.60 -0.03 -0.02 3.51 0.18 -0.06
3 Month Change 2.68 -0.02 -0.01 15.48 0.45 -0.42


GROWTH
2008 (A) 2009 (E) 2010 (E)

Norm. EPS -19.55% 17.02% -22.65%
DPS 28.57% -98.89% 385.71%

INVESTMENT RATIOS
2008 (A) 2009 (E) 2010 (E)

EBITDA 268.80m 278.25m 283.50m

EBIT 173.00m 185.84m 188.31m

Dividend Yield 8.12% 0.09% 0.44%

Dividend Cover 1.37x 144.43x 23.00x

PER 8.98x 7.68x 9.92x

PEG -0.46f 0.45f -0.44f

Net Asset Value PS -81.79p 56.00p 49.00p

Bit dodgy mate ... but who dares wins :-)

2 more broker Recommendations...

07-Oct-09 Debenhams DEB Morgan Stanley Overweight 77.90p 105.00p - Reiteration

07-Oct-09 Debenhams DEB HSBC Overweight 77.90p - 115.00p New Coverage

Moving up nicely this morning..... nice.

DEB going forward on a P/E of just under 10 to Aug 2010 derd cheap...

Debenhams Forecasts

Year Ending Revenue (m) Pre-tax (m) EPS P/E
31-Aug-09 2,343.05 123.91 10.01p 7.8
31-Aug-10 2,374.31 135.50 7.87p 9.9

Brokers aswell by and large like the stock...

What The Brokers Say

Strong Buy 11
Buy 2
Neutral 5
Sell 1
Strong Sell 1

Total 20

Source Digital Look.

Solid start to the week some interesting analysis on the retail sector as a whole here......

Sunday Times

Shares in the retail sector have more than doubled since last autumn and now trade at an average of 12 times 2010 earnings, according to leading sector analysts.

Some racier stocks, largely where earnings are low and there is a big recovery multiple built in like Currys owner DSGI are priced at more than 20 times future earnings. Given the prospect of increased unemployment and tax rises in 2010, some question when the sector is going to blow up.

The theory goes that retailers have been one of the big beneficiaries of the recent equities rally and these typically cyclical stocks have been chased too hard too soon.

Jonathan Pritchard at Oriel Securities has another theory. He is a bull on the sector he points to mitigating factors such as cheaper property rents and wage freezes that will reduce pressure on retailers' underlying cost base. He also believes shoppers will probably spend more in 2010 than they did during 2009.

In the past few months, signs of economic recovery have given greater confidence to those still in work and they may be prepared to spend a bit more than last Christmas. This could trigger upgrades to analysts' 2010 earnings forecasts from a low base which would make the current punchy earnings multiple for retail shares (still in line with the long-run average for the sector) appear a bit less crazy.

Debenhams has been through the wringer over the past year, but it is on a robust footing now and should make more advances over the next couple of years. Chief executive Templeman is ambitious and wants to take store numbers from about 160 to as high as 230. Further expansion overseas may also be on the cards.

Early 2010 will almost certainly be tough for retailers as fears of unemployment and higher taxes weigh on consumers' minds, but Debenhams is gaining market share and making progress even through hard times. When conditions ease, it should benefit further. At 83p, the stock is a buy, says the Daily Telegraph.

http://www.sharecast.com/cgi-bin/sharecast/story.cgi?story_id=3176090

Mostly all positive and why not with a miserly forecast P/E of just 9.6 to 2011..........

Debenhams PLC

FORECASTS
2010 2011

Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Shore Capital
11-12-09 BUY 142.10 7.60 0.90 161.00 8.50 0.90

Panmure Gordon
11-12-09 HOLD 134.00 7.45 150.60 8.37 3.00

Investec Securities
10-12-09 BUY 135.00 7.55 1.00 159.00 8.90 2.50

KBC Peel Hunt Ltd
10-12-09 BUY 140.77 7.82 152.80 8.49 2.50

Oriel Securities
09-12-09 BUY 145.00 7.50 0.50 153.00 8.00 0.80

SG Securities
09-12-09 HOLD 8.14 9.34 3.00

Numis Securities Ltd
08-12-09 ADD 141.90 8.10 156.00 8.90

Singer Capital Markets Ltd
07-12-09 BUY 144.40 8.10 165.00 9.20 4.60

Seymour Pierce
01-12-09 HOLD 135.00 7.80 140.00 8.00

Altium Securities
30-11-09 BUY 143.90 8.00 163.70 9.10 1.50

Arden Partners
30-11-09 BUY 135.00 7.60 2.00 155.00 8.70 3.30

Nomura Research Institute
23-10-09 BUY 134.10 7.34 151.80 8.35

Pali International [R]
21-08-09 NEUT 145.00 8.00 2.90

2010 2011
Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Consensus 138.33 7.70 0.27 154.97 8.60 1.65
1 Month Change -1.81 -0.02 -0.03 2.93 0.01 0.05
3 Month Change 2.80 0.06 -0.13 1.04 -0.34 -0.05


GROWTH
2009 (A) 2010 (E) 2011 (E)

Norm. EPS 15.99% -23.16% 11.69%
DPS -92.06% -46.00% 511.11%

INVESTMENT RATIOS
2009 (A) 2010 (E) 2011 (E)

EBITDA 278.50m 286.09m 301.33m

EBIT 182.40m 195.08m 205.55m

Dividend Yield 0.60% 0.33% 1.99%

Dividend Cover 20.04x 28.52x 5.21x

PER 8.26x 10.75x 9.63x

PEG 0.52f -0.46f 0.82f

Net Asset Value PS -32.22p 41.00p 48.00p

And even more Broker love ins with this stock....

Broker recommendation full details

Date: 27 November, 2009
Broker: Goldman Sachs
Company: Debenhams


Recommendation:
Raises price target to 111p from 108

InterMarket Stock's recommendation rating:
Buy

Over all Intermarket Stock rating for
Debenhams
Overweight


Historical recommendations for Debenhams

27 November, 2009 Raises price target to 111p from 108 Buy

13 November, 2009 Retain Buy price target 120p Buy

13 November, 2009 Retain Buy price target raised to 110p from 90p Buy

27 October, 2009 Starts with Overweight - price target 100p Overweight

Another broker jumps aboard with a buy reco...

Debenhams Consumer, Cyclical Buy 81.9 Shore Capital Stockbrokers

And another Broker BUY note out this morning....

Debenhams Consumer, Cyclical Overwt 100p 81.4p 22.9% Barclays Capital

sees 22.9% upside.

Should be good news for Debenhams.......

Page last updated at 11:50 GMT, Sunday, 20 December 2009

http://news.bbc.co.uk/1/hi/business/8423219.stm

Christmas shoppers defy cold weather to spend

Shoppers have been spending despite the cold weather
UK shoppers have defied the harsh winter weather to spend during the last weekend before the Christmas holidays.

The New West End Company, which represents more than 600 traders in central London, said sales were up 10% on last year's sluggish trading.

"We estimate 140m to be spent over the weekend and we are looking to go over a million people," it said.

Heavy snowfall has caused traffic chaos in many parts of the UK, and is expected to continue on Sunday.

Sales were reported to be brisk across the UK, while credit card firm Visa expects people to keep spending this week.

Visa expects to process a new record of more than 17 million transactions in the UK on 23 December, up 16% from the same day last year.

'Fed up'

"We think it's going to be significantly greater this year because people have bounced back from recession," said Richard Dickinson, chief executive of the New West End Company, which represents shops in Bond Street, Oxford Street and Regent Street.

"Either they are fed up with the recession and want to enjoy Christmas or they are thinking we are pulling out of it now."

The company said only 40% of goods were on sale this year, compared to 90% last year.

Customers were also buying more expensive items such as televisions, as they attempted to beat the increase in value-added tax, back to 17.5% from 15%, in the new year.

Bluewater Shopping Centre in Kent expects 250,000 shoppers over the weekend and said November sales rose by 5% compared with the same month last year.

"We have had a tremendous few months in the run-up to Christmas," a spokesman said.

Capital Shopping Centres, which represents 14 regional shopping centres including Braehead in Glasgow, Lakeside in Thurrock and Metrocentre in Gateshead, reported its busiest day of trading on Saturday.

The company said more than seven million shoppers had passed through the centres this week.

The Met Office said that "heavy and prolonged" snow showers would continue through the afternoon across Greater Manchester.

Good news for DEB.......

SHARES MAGAZINE WEEKLY TIPS
23 December, 2009 08:18:14 AM


Tips for 2010
* Beazley - BSkyB - Eaga - Micro Focus - Reed Elsevier - Victrex - Standard Chartered - Alterian - Avocet Mining - Debenhams - HSBBC Infrastructure - London Mining - Redhall - Workspace - Advanced Computer Software - AFC Energy - Akers Bio Sciences - Begbies Traynor - Fairpoint - Falklands Oil & Gas - Luminar

Not doing too well at the open but Shares magazine tip from xmas edition.......

Debenhams (DEB) BUY - 83.4p - Stop loss: 66.7p

A debt reduction programme, shrewd acquisitions and likely profit margin improvement all
mean retailer Debenhams is worth buying for 2010.

Wed 20:43 Times Article



Self-centred shopping meant that Boxing Day and Monday were the two busiest online shopping days of the year, according to Hitwise, the online research group.

Robin Goad, research director of Hitwise, said that the number of internet hits beat even the pre-Christmas peaks on December 6 and 7. However, he said that there was less of a Christmas Day surge this year than last.

On Boxing Day, online retailers that received an above-average spike in traffic included Next, Currys, Debenhams, Tesco Direct, Comet and PC World.

The top site was eBay possibly buoyed by a wave of customers hoping to sell unwanted presents followed by Amazon, Argos, Next and Play.com. Mr Goad said that online retailers with a bricks-and-mortar presence outperformed pureplay online retailers during the sales period.

think personaly that we will get higher margins at DEB and a stonking return from the online business, the TA is certainly very bullish, please see chart:

Fundies certainly backing up the chart.

analysts by and large very positive on the stock with a very cheap P/E of just over 9 going into 2011, way too cheap I reckon.

Debenhams PLC

FORECASTS
2010 2011

Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Panmure Gordon
31-12-09 HOLD 134.00 7.45 150.60 8.37 3.00

SG Securities
30-12-09 HOLD 8.14 9.34 3.00

Arden Partners
30-12-09 BUY 134.97 7.55 2.00 155.21 8.68 3.30

Shore Capital
25-12-09 BUY 142.10 7.60 0.90 161.00 8.50 0.90

Oriel Securities
22-12-09 BUY 145.00 7.50 0.50 153.00 8.00 0.80

KBC Peel Hunt Ltd
22-12-09 BUY 140.77 7.82 152.80 8.49 2.50

Investec Securities
21-12-09 BUY 135.00 7.55 1.00 159.00 8.90 2.50

Seymour Pierce
18-12-09 HOLD 135.00 7.80 140.00 8.00

Numis Securities Ltd
16-12-09 ADD 141.90 8.10 156.00 8.90

Singer Capital Markets Ltd
07-12-09 BUY 144.40 8.10 165.00 9.20 4.60

Altium Securities
30-11-09 BUY 143.90 8.00 163.70 9.10 1.50

Nomura Research Institute
23-10-09 BUY 134.10 7.34 151.80 8.35

Pali International [R]
21-08-09 NEUT 145.00 8.00 2.90

2010 2011
Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Consensus 138.18 7.68 0.27 155.02 8.60 2.05
1 Month Change -3.97 -0.05 -0.15 -0.64 -0.11 0.40
3 Month Change -0.91 -0.14 -0.06 2.71 -0.13 0.26


GROWTH
2009 (A) 2010 (E) 2011 (E)

Norm. EPS 15.99% -23.36% 11.98%
DPS -92.06% -46.00% 659.26%

INVESTMENT RATIOS
2009 (A) 2010 (E) 2011 (E)

EBITDA 278.50m 286.09m 300.79m

EBIT 182.40m 195.02m 205.41m

Dividend Yield 0.64% 0.35% 2.63%

Dividend Cover 20.04x 28.44x 4.20x

PER 7.77x 10.14x 9.06x

PEG 0.49f -0.43f 0.76f

Net Asset Value PS -32.22p 41.00p 48.00p

Broker BUY note just out (digital look).....

05-Jan-10 Debenhams DEB Merrill Lynch Buy 79.65p - - Reiteration

Well looks like the Brokers are pretty confident DEB are going to at least meet forecasts, just look at how bullish they have been in the new year....

Debenhams PLC

FORECASTS
2010 2011

Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Panmure Gordon
07-01-10 HOLD 134.00 7.45 150.60 8.37 3.00

Investec Securities
07-01-10 BUY 135.00 7.55 1.00 159.00 8.90 2.50

SG Securities
07-01-10 HOLD 8.14 9.34 3.00

Arden Partners
06-01-10 BUY 134.97 7.55 2.00 155.21 8.68 3.30

Oriel Securities
05-01-10 BUY 145.00 7.50 0.50 153.00 8.00 0.80

Numis Securities Ltd
05-01-10 ADD 141.90 8.10 156.00 8.90

Shore Capital
04-01-10 BUY 142.10 7.60 0.90 161.00 8.50 0.90

Cant get much more bullish than that.

PRESS DIGEST - British business - Jan 8
08 Jan 2010 - 04:00


MORE RECORD SALES FIGURES CREATE HIGH STREET CONFUSION

Record takings over the Christmas period from Sainsbury's , New Look and JD Sports have painted a confusing picture as they join a growing list of store groups to report better-than-expected figures, despite the country being in the grips of the worst recession since World War Two. Sainsbury's like-for-like sales growth over the festive period was 4.2 percent, New Look boasted figures of 5.9 percent and JD Sports said its figures climbed 6.6 percent in the five weeks to Jan. 2. Analysts pointed out the "sales windfall" retailers experienced following the collapse of Woolworths and Zavvi

Debenhams raised to buy from add at Numis.

You still in GF ? ,looking at this in the 60s ,may be worth a punt .

.

.

good results - 10 % drop since - another dog to avoid imho

Interim Management Statement.

Financial Performance



Gross transaction value for the period increased by 8.9% compared with the previous year including Magasin du Nord ("Magasin") and by 1.1% excluding Magasin. Like-for-like sales decreased by 0.4% over the 42 weeks. Like-for-like sales continued to be impacted by c.1.5% due to the strategy of improving gross margins by increasing the penetration of own bought trading space, which was predominantly undertaken in the fourth quarter of 2009, and by stronger comparatives in the third quarter of 2009.



We continue to make market share gains, particularly in menswear and childrenswear which have seen share gains of 20 basis points and 40 basis points respectively (source: Kantar Worldpanel Fashion 24 weeks market share data to 23 May 2010 vs. 2009). Womenswear share continues to be impacted by lower own bought sales densities.



Gross margin performance has been strong, driven by the performance of own bought ranges and our focus on tight stock control and markdown management in light of fragile consumer confidence. As a result of this, gross margin for the year is now expected to exceed our previous guidance of an increase of 80 basis points excluding Magasin and flat including Magasin.



Magasin continues to perform in line with our expectations and we are encouraged by the customer reaction to the introduction of Debenhams' own bought ranges into the stores. The Field's and Odense stores which have the highest proportion of Debenhams merchandise are showing good early signs of success. Consequently, we are confident in reiterating the guidance for Magasin set out at the interim results in April.

Waiting for confirmation but looks like a bullish pattern developed at DEB, Debenhams.

.

Mwa Mwa.

FULL YEAR RESULTS FOR 52 WEEKS ENDED 28 AUGUST 2010


Financial Highlights



Gross transaction value up 9.6%

Like-for-like sales flat

Gross margin* up 70 bps

Headline profit before tax** up 20.6% to 151.0m

Net debt at 28 August 2010 516.8m, down 73.5m from a year ago

Dividend expected to be reinstated at interim 2011

Interim Management Statement.

DEBENHAMS PLC - INTERIM MANAGEMENT STATEMENT

-- Group gross transaction value +4.2%

-- Like-for-like sales +0.3% inc VAT

-- Like-for-like sales -1.3% ex VAT

-- Continuing market share gains

-- Gross margin improvement

-- Debt and financing costs improved

Trading Update.

.

.

Debenhams will post its full-year results on Thursday and something less rocky is expected. Things have been pretty much "steady as she goes" at Debenhams of late, with the shares, priced at 66p on a P/E of around 7. And since payments were resumed, the dividend looks like ticking along at a nice 5%.

Although the share price has recovered of late -- it has dipped as low as 51p this year -- it's still looking like a pretty reasonable bargain to me, and is presumably unloved mainly because it's "retail" and "high street".

Debenhams stays optimistic after sales and profits growth
StockMarketWire.com
Department store group Debenhams said gross transaction value was up 4.5% in the year to 3rd September. Like-for-like sales were up 1.2% including VAT, down 0.3% excluding VAT. Headline PBT was up 10% at 166.1m.

Net debt at 3rd September was 383.7m, down 133.1m from a year ago.

Basic earnings per share were up 21.3% to 9.1p (2010: 7.5p).

A final dividend 2p will be paid, giving a total dividend of 3p (last year: nil).

Debenhams intends to commence a share buyback programme in the second half of 2012 financial year.

We'll hear how Christmas sales at Debenhams went on Tuesday, and hopefully the year to August 2012 will have got off to a decent start. Current forecasts are suggesting a full-year dividend of around 5.5% on the current price of 58p, so the shares might be worth considering.

RNS Number : 2499V

Debenhams plc

10 January 2012

10 January 2012

DEBENHAMS PLC

INTERIM MANAGEMENT STATEMENT FOR 18 WEEKS TO 7 JANUARY 2012

-- Group gross transaction value +0.5% for 18 weeks
-- Group like-for-like sales for 18 weeks
o +1.4% inc VAT

o flat exc VAT

-- Strong December like-for-like sales; up 6.5% inc VAT
-- Gross margin guidance for full year remains flat
Debenhams plc, the leading department stores group, today announces its interim management statement for the 18 weeks to 7 January 2012.

Note: all comparisons relate to the 18 weeks to 7 January 2012 versus the 18 weeks to 8 January 2011 unless otherwise stated.

Group gross transaction value for the 18 weeks to 7 January 2012 increased by 0.5%. Group like-for-like sales increased by 1.4% including VAT and were level with last year excluding VAT. The online business, which is a key component of our multi-channel offer, delivered another strong performance with like-for-like sales increasing by 34.8%.

Overall, we are pleased with this good performance given the difficult trading conditions which have been experienced during the period. Warmer weather throughout October and November impacted the sales of seasonal product lines and uncertainty in the wider economy continues to have an adverse impact on consumer confidence. December trading was notably stronger with growth in Group like-for-like sales for the five weeks to 31 December of 6.5% including VAT.

Debenhams has continued to take a pragmatic approach to trading throughout the 18 weeks, focusing on maximising cash gross margin through management of promotional events and product mix. As a result, stock levels are firmly under control across all departments and terminal stock at the end of the first half is expected to be in line with historic levels. At this stage, gross margin guidance for the financial year is unchanged at flat.

One new store opened in Newbury during the 18 weeks taking the total to 170 stores in the UK, Ireland and Denmark. Two new international franchise stores were also opened, both in the Philippines, giving a total of 66 stores in 25 countries.

Except as detailed above, there have been no material events or transactions which have impacted the Group's strong financial position since the previously announced balance sheet dated 3 September 2011.

Michael Sharp, Chief Executive of Debenhams, said:

"I am pleased with this performance. We traded well despite the difficult environment as evidenced by strong sales in December, including record sales in the final week before Christmas.

"Looking forward, we are cautious about the strength of the economy and its impact on consumer behaviour over the remainder of the financial year. We will continue to manage the business tightly with an ongoing emphasis on cost and margin management. We are confident that the design, quality and value offered by our spring/summer 2012 product ranges will find favour with customers and expect to see some benefit from lower input prices in the second half of the year."

- Ends -

Gone short here this morning. Technical trade. Chart to follow.

DEB Debenhams

System chucked this out as a short yesterday. Seems to have a range of 76p to 56p.

Wed article re to Robbie Burns
short on DEB

I've shorted Debenhams (DEB). The ladies in the audience at the seminar were very critical to say the least but a look at the chart shows it always peaks around 75 and falls back to 60. So my plan is to short here for a fall back and then go long hopefully at 60. Well that's the plan anyhow and of course if it doesn't work out I'll take a small loss instead.

http://www.nakedtrader.co.uk/

Half Year Results.

Financial Highlights

· Group gross transaction value up 1.4%
· Group like-for-like sales up 1.4% including VAT, up 0.3% excluding VAT
· Group gross margin down 30 basis points, in line with guidance
· Profit before tax ahead of market expectations, up 1.4% at £127.1m
· Earnings per share up 4.2% to 7.4p
· Interim dividend of 1.0p per share
· Net debt reduced by £71.9m during half to £311.8m
· Long-term share buyback programme to commence with initial £20m over next 6 months

Operational Highlights

· Experienced management team in place under leadership of CEO Michael Sharp
· Investment in UK store estate: pipeline now at 14 stores up to 2017
· On target to complete 45 store modernisations in next 2 years
· Multi-channel business continues to grow strongly; online sales up 34.7%*
· Awarded Multi-Channel Retailer of the Year at Oracle Retail Week Awards 2012
· 3 new international franchise stores opened; pipeline now at 13 stores
· Solid performance by Magasin du Nord: like-for-like sales up 0.9%
· International online delivery expanded to 40 countries
· Ongoing cost, stock and capital discipline
*excluding Magasin

Not a bad set of results

Department store group Debenhams is set to give a trading update on Thursday and broker Panmure Gordon thinks the positives should include the strong womens-wear collection at the recent autumn/winter 2012 show, and something described as 'a market-leading front end multichannel proposition.' That being said, the company is going up tough comparatives from a year ago at a time when the High Street is having a rough old time of it. On top of that, Debenhams has 20 of its stores undergoing refurbishment in the second half of its financial year, which is sure to disrupt sales. The statement is set to cover trading in the 16 weeks to June 23rd, with numbers also provided for a 42-week period to the same date. "For the 16 week period to be reported next week, we think that 1.4% GTV [gross transaction value] growth and 1.3% LFL [like-for-like] sales decline are reasonable estimates," Panmure Gordon said

http://www.moneyam.com/action/news/showArticle?id=4397153

..Debenhams beats forecasts despite wet weather

By Reuters | Telegraph – 12 minutes ago
Debenhams (LSE: DEB.L - news) , Britain's second largest department store group, showed its resilience in the economic downturn by beating forecasts for quarterly underlying sales and winning market share even though it faced a deluge of rain in April.

The company, ranked second in Britain after employee-owned John Lewis, said on Thursday sales at stores open over a year rose 3.1pc, excluding VAT sales tax, in the 16 weeks to June 23, which includes its fiscal third quarter.

That compares with a rise of 0.3pc in its first half and analyst forecasts in a range of down 3pc to up 1pc.

Debenhams has benefited from a broad width of product choice , a broad church of customers, multiple routes to market and a strategy to drive profits by investing some of its gross margin, through price cuts and promotions, into pushing sales.

The firm, which trades from about 170 stores in the UK, Ireland (Xetra: A0Q8L3 - news) and Denmark, about 70 franchise stores in 25 international markets and across the Internet, said it now expected gross margin for the full year to be around 30 basis points lower than 2010-11 compared with previous guidance of broadly flat.

"Taking the sales performance, revised gross margin guidance and higher marketing spend into account, we remain comfortable with the market's current expectations for reported profit before tax for the year as a whole," it added.

Debenhams returned to the stock market at 195p in 2006 after two and a half years in private equity hands. The shares have risen 44pc over the past six months and closed at 81.4p on Wednesday

..Debenhams steps up growth plan with German website

By Jamie Dunkley | Telegraph – 35 minutes ago

High street retailer Debenhams (LSE: DEB.L - news) has stepped up its international growth plans by launching its first foreign language website in Germany.

The company, which has 164 stores in the UK and Ireland (Xetra: A0Q8L3 - news) and the Magasin du Nord chain in Denmark, said it also planned to expand its overseas delivery service to another 34 countries across the world, including Brazil, Chile (Berlin: G4R.BE - news) and South Africa, taking the overall figure to 41. Debenhams expects to expand this to 67 countries this summer.

The new German site - http://www.debenhams.de - is launched at a time when British companies are struggling to export to the continent as the eurozone debt crisis hits demand. The website is entirely in German and transacts in euros.

Debenham’s international expansion will provide customers across the world with greater access to clothes by designers including Matthew Williamson, Jasper Conran, Julien Macdonald and Henry Holland.

Simon Forster, online director at Debenhams, said: “Our mix of famous British designers and heritage products is expected to attract thousands of new customers to Debenhams.de.

“With the second largest e-commerce market in Europe (Chicago Options: ^REURUSD - news) after the UK, Germany has consistently been one of our top performing countries online and now German shoppers will benefit from their own bespoke website.”

Debenhams reported a 1.4pc rise in pre-tax profits to £127.1m during the six months to March 3. However, the retailer has warned it could be hit by the Queen’s Diamond Jubilee, the Olympics and the Euro 2012 football championships, as customers divert spending on to barbecues, beer and televisions.

Lord Green, the trade and investment minister, welcomed Debenham’s announcement. He said the UK’s online retail market, the largest in Europe, is set to grow 13pc to £77bn this year.

“The launch of Debenhams.de shows the power of British brands and their popularity with consumers the world over. It will enable German shoppers easier access to unique British design-led products, boosting our exports with Europe’s largest economy.”

..

Debenhams shares are still hovering around their 52-week peak of 96.5p, just a couple of pence down on 94.2p, after a remarkable year that has seen shares in the department store gain more than 60%.

It all fits in with the start of a recovery in the retail sector, after a downturn that took the good down with the bad -- at their low point of 50p, Debenhams shares were horribly undervalued. And now, even after such a great performance this year, forecasts still suggest a decent dividend yield of 3.2% this year and 3.6% next, from shares on a P/E of around 10.

Debenhams booms as British do up their homes homesBy Neil Craven
PUBLISHED: 21:50, 1 September 2012 | UPDATED: 11:08, 2 September 2012
Comments (0) Share

..Debenhams has expanded its ranges of homeware and furniture ahead of Christmas to cash in on Britons sprucing up their houses as they spend more time at home.

Reductions on holiday spending and dismal summer weather have encouraged the trend that has boosted sales of Debenhams furniture ranges by 55 per cent in the past six months compared with a year earlier.

The retailer has increased ranges by more than two thirds since last year to 1,700 products. It plans to begin a marketing campaign and to launch its new catalogue this weekend.


Fashionable: Analysts are tipping Debenhams shares, up 63 per cent in 2012
Debenhams will be pushing expanded lines of sofas and beds among other products.
Steve Lightfoot, Debenhams’ home trading director, said: ‘As foreign holidays become more costly, we have seen a trend for home improvement. Customers are spending time on their home and on more expensive furniture goods.’

The retailer is also hoping that the miserable summer, coupled with distinctive fashions for autumn, will make customers more likely to splash out on clothing treats.

Debenhams shares have risen 63 per cent so far this year to 95.6p and analysts say it is one of the best-placed stocks.

Debenhams: BarCap downgrades to equal weight, target lifted from 90p to 100p

.

Concern over Debenhams figures By JAMIE GRIERSON AND HOLLY WILLIAMS
Published on Sunday 16 September 2012 00:00


INVESTORS are keen for reassurance over trading conditions at department store chain Debenhams after rival Next last week warned of an “unusually quiet” August and September.


Next spooked investors with news of its summer sales slowdown, sending its shares sharply lower.

John Lewis painted a more rosy picture when it reported a 9.2 per cent rise in like-for-like sales in the six months to 28 July, 
although figures released on Friday showed a slowdown to 4.3 per cent in the week to 8 September.

With clothing and womenswear in particular having taken a hit in recent months, there may be some consequences for Debenhams.

The group, which reports fourth-quarter figures on Tuesday, has delivered robust sales growth in recent months as its recently-
appointed chief executive, Michael Sharp, leads a turnaround at the chain.

Sales rose 3.1 per cent in the 16 weeks to 23 June, against 0.3 per cent in the previous half-year.

Sharp has been focusing on improving sales growth rather than margins – a strategy that has paid off, according to analysts

Half-year profits rose by 1.4 per cent to £127.1 million and Debenhams’ share price has leapt by 87 per cent in the past 12 months.

Analysts are expecting sales to remain positive in the final quarter, although a weaker clothing market is set to ease growth slightly.

Fraser Ramzan, an analyst at Nomura, is pencilling in a 2 per cent rise in like-for-like sales growth.

Peel Hunt analyst John Stevenson noted: “By Christmas, Debenhams will have completed 32 store refurbishments, with a further 15 a year pencilled in for 2013 and 2014.”

Trading Update

Key highlights


· Strong like-for-like sales growth and progression throughout the year in challenging markets

· Modernised stores performing well

· Market share gains in womenswear and other key categories

· Online sales up 40%

· Good growth in international businesses

· Profit before tax for year expected to be ahead of last year*, in line with current market expectations

· Further debt reduction, initial £20m share buy-back completed by year end

*52 weeks to 27 August 2011 vs. 52 weeks to 1 September 2012

Debenhams & the missing guidance upgrade
By John Harrington

Tue 18 Sep 2012

DEB - Debenhams

Latest Prices
Name Price %
Debenhams 99.45p 0.00%
Marks & Spencer Group 365.20p -1.72%
Next 3,400.00p -0.03%

FTSE 100 5,868 -0.43%
FTSE 250 11,934 -1.22%
FTSE 350 3,128 -0.54%
FTSE All-Share 3,068 -0.32%
FTSEurofirst 300 1,114 -0.13%
General Retailers 1,811 -1.21%

LONDON (SHARECAST) - Life-for-like (LFL) sales growth is usually regarded as the holy grail of retailing, and department store Debenhams delivered it in spades at the end of its trading year, but the market was puzzlingly indifferent to this achievement.

Having reported year-on-year (y/y) LFL sales growth of 3.1% (excluding Value Added Tax, or VAT) in the 16 weeks to June 23rd a few months back, the group put on a spurt in the final 10 weeks of the financial year (to September 1st) to achieve LFL growth of 3.7% (excluding VAT). Peel Hunt had been expecting growth of somewhere between 1.5% and 2%.

For the year as a whole group sales were 1.6% of the previous year, which was better than the 1.3% improvement Panmure Gordon had pencilled in.

Given the pounding clothing chain Next took last week after it said sales had been disappointing in August, shareholders in Debenhams might have expected the group's summer surge to have been rewarded with a bit more market enthusiasm than it got.

Seymour Pierce said the update was a "good result in volatile market conditions." However, vis-a-vis Next, it does point out "the update may surprise some after Next reported a sales slowdown in current trading last week. However, Debenhams trading update covers a different period and does not include the first two weeks of September as Next’s comments did. These were particularly weak for the industry."

A search for other potential reasons for the lukewarm reception does not uncover many.

The gross margin for the 52 weeks to September 1st, 2012, is expected to be three-tenths of a percentage point lower than the previous year, but the group had already flagged this to the market.

Maybe bulls were hoping for a late fillip to full-year guidance figures, in which case they were disappointed; Debenhams said profit before tax for the fiscal year just ended will be in line with current market conditions, which implies a figure of somewhere between £153m and £165m. The median forecast in that range is £158.4m.

Panmure Gordon could be on to something when it suggests that a better than expected LFL sales performance would normally lead to an increase in profits guidance.

"We think that the main reason for today’s lack of profit upgrade is additional investment in systems and logistics to support the multi-channel business, since Debenhams’ roots do not lie in Home Shopping (unlike Next for example)," the broker notes, adding that the slightly higher guidance on net debt might encourage some holders to bank gains after the stock's good run.

Fiscal year-end net debt is expected to be around £15m lower than last year at around £370m. The company continues to generate cash and has, in the past, used some of this to buy back shares, but shareholders will have to wait until October 25th to learn the size of the next tranche of share repurchases.

Peel Hunt remains a fan of the stock, and has a target price of 115p. "Debenhams continues to benefit from a high level of self-help that will drive sales momentum over the year ahead. Online initiatives, including the ‘endless aisle’, which gives online customers access to store stocks and has driven significant improvements in availability, continue to lift multi-channel participation," said Peel Hunt's retail analyst, John Stevenson.

Seymour Pierce reckons the shares are no more than a "hold". The broker's retail analyst, Kate Calvert, finds plenty of reasons to believe that Debenhams will keep on growing, but it is no longer so obviously undervalued versus its peers.

"Debenhams has 30 of its 165 stores left to refurbish which will take another two years and its new store pipeline is building again, though remains dependent on the property market. Management believes there is potential for 240 stores - a theoretical £1bn sales opportunity (FY11 [fiscal 2011] sales of £2.4bn). Management has 20 stores in its five year plan of which 15 are under contract, seven have full planning permission and a couple have builders are on-site," she notes.

"The share price has rallied strongly by 25% (sector +13%) over the last three months and 67% over the last year and closed the valuation gap on its peers trading on a CY13 PE [current year price/earnings multiple] of 10x compared to M&S and Next on 10.8x and 11.7x respectively," Calvert added.

Given that level of recent out-performance, as many stock market stars have discovered, merely doing "very well" (to quote old Mr Grace, of Grace Brothers' department store) is not good enough to keep the bandwagon going.

Elsewhere on the high street, department store group Debenhams (LSE: DEB.L - news) saw like-for-like (LFL) sales rise 3.7% in the final 10 weeks of its financial year, which ran to September 1st. For the full-year, LFL sales were up 1.6%. Despite the sales figures being better than expected, the company did not increase profit guidance for the year, which may account for why the shares closed little changed.


Having read the above that LFL sales ran to sept 1 and the company did not increase
profit guidance for the year end, I wonder if they are facing the same slowdown as Next has. Next reported into two weeks of September .

Hmmmm

While other high-street retail shares have floundered, department store Debenhams shares have soared by 75% over the past 12 months to 102p -- yet they're still only on a P/E of 11, which seems fairly modest. Mind you, the shares did slide from around £1 in 2009 to a low last year of 51p, so what we've seen is a recovery -- but it's a better recovery than many others have managed.

On Thursday 25 October, the company will present us with its full-year results, and according to the recent trading statement we should be seeing "strong like-for-like sales growth", with pre-tax profit ahead of last year and in line with forecasts. Debenhams is also reducing debt and buying back shares, so we should look for further details of those when we get the figures.

Full Year Results

FINANCIAL HIGHLIGHTS

· Total sales up 2.6%1

o UK segment sales up 2.6%1
o International segment sales up 2.7%1 including franchise stores up 17.2%1

· Group like-for-like sales up 2.3% including VAT, up 1.6% excluding VAT1

· Group statutory revenue up 2.5%1

· Group online sales up 39.8%1

· Gross margin percentage down 30 basis points in line with guidance1

· Group operating profit unchanged at £175.0m1

· Group profit before tax up 4.2% to £158.3m1

· Basic earnings per share up 14.0% to 9.8p1

· Net debt improved by £15.0m to £368.7m after £20.1m share buyback2

· Final dividend up 15.0% to 2.3p; full year dividend up 10.0% to 3.3p

· Share buyback to continue with up to £40m over next 12 months
152 weeks to 1 September 2012 vs. 52 weeks to 27 August 2011
21 September 2012 vs. 3 September 2011


OPERATIONAL HIGHLIGHTS

· Continued progress against the four pillars of our strategy

o 18 UK stores modernised, on track to modernise all outstanding stores
o Expansion of UK regional footprint, 2 new stores adding 170 new jobs
o Investment in brand and product ranges to enhance customer offer
o Further international expansion, entering 2 new territories and 7 new stores

· Market share gains achieved across key product categories, especially non-clothing

· Continued innovation in multi-channel: launch of Endless Aisle, free wi-fi in all stores

· Confidence in strategic delivery leads us to raise targets for online and international operations

o Medium-term target for online sales raised from £500m to £600m
o Five year target for total franchise stores increased from 130 to 150

I've taken some profit here today.

Interim Management Statement

Highlights

· Good sales momentum: 18 weeks LFL sales up 2.9%

· Highest ever December sales: five weeks to 5 January LFL sales up 5.0%

· Online sales ahead of expectations: 18 weeks up 39.0%

First Half Trading Update

The strong sales momentum reported on 8 January 2013, with Group like-for-like sales up 2.9% for the first 18 weeks of the half, initially continued at a similar level with Debenhams making further market share gains in key categories*.

In the latter part of January, however, the UK business was severely disrupted by the snow which fell across the country. Whilst Group like-for-like sales grew by c.3% for the 26 weeks, during the snow-affected period of 14-27 January UK like-for-like sales were down by c.10%.

To recover sales lost due to snow, we introduced additional promotional events in February focused on Valentine's Day, half-term and the month end. Although these events did drive some incremental sales they did not fully recover those lost in January. Further, the sales generated were mainly in lower margin clearance lines which means that gross margin for the first half will be c.20 basis points lower than last year. Therefore, gross margin for the year is now more likely to be flat than the 10 basis points increase previously guided to.

As a consequence of the action taken, terminal stock at the end of the half will be in line with the long-term average of around 3%.

The result of this short but heavy period of disruption is that we now believe profit before tax for the first half of the financial year will be around £120 million.

Outlook for second half

We enter the second half with a strong spring/summer collection and stocks at planned levels. Having undertaken a detailed review of our forecasts for the second half of the year, we believe that they are robust and that we will continue to grow sales as expected.

Full year guidance on costs, capex, dividends and the share buyback programme are unchanged.

Michael Sharp, Chief Executive of Debenhams, said:

"Whilst the impact of the snow on the outcome for the first half is disappointing, it is now behind us and sales volumes have recovered. We are confident in our spring/summer ranges and that we can grow sales in the second half. Our strategy to build a leading international, multi-channel brand remains on track and we continue to focus on the four pillars of the strategy and investing in our business for long-term, sustainable growth."

Debenhams will report its results for the 26 weeks to 2 March 2013 on 18 April 2013.

*Sources: Kantar Worldpanel Fashion 24 weeks to 20 January 2013 vs. 2012, NPD January 2013

Note: all numbers are provisional pending the full closing of accounts for the 26 weeks ended 2 March 2013.
- Ends -

Deutsche Bank Buy 83.93 82.60 120.00 100.00 Upgrades

JP Morgan Cazenove Neutral 83.93 82.60 137.00 95.00 Downgrades

Morgan Stanley Equal weight 83.93 82.60 110.00 90.00 Retains

Maybe worth a look now that the 'disruptive snow' has gone!

Half Yearly Results

Financial headlines
· Gross transaction value up 3.5%
o UK up 3.9%
o International up 1.6%
· Group like-for-like sales up 3.1%
· Group gross margin down 20bps
· Profit before tax down 5.4% at £120.3m
· Earnings per share up 2.7% to 7.6p
· Interim dividend of 1.0p per share
· Long-term share buyback programme ongoing

Operational headlines
· Further progress against the four pillars of our strategy to build a leading international, multi-channel brand, supported by disciplined investment in key areas
· Market share gains achieved in clothing and non-clothing product categories
· Strong multi-channel growth with online sales up 46%, now 12.7% of sales
· Continued investment in store modernisations delivering good returns, transformation of Oxford Street into international flagship store on plan
· First Christmas brand advertising campaign for six years achieved our highest ever levels of brand awareness
· New Designers at Debenhams announced: tailor Patrick Grant for menswear and milliner Stephen Jones for women's accessories

Mind the gap.

Still looking to fill that gap.

Interim Management Statement

Highlights

· Robust performance in challenging market conditions: GTV up 1%, LFL flat
· Continued market share gains in clothing, beauty and home
· Online sales grow by 40% in H2 to date
· Transformation of Oxford Street into international flagship store on schedule, creating 430 new jobs

JP Morgan Cazenove Overweight 0.00 95.00 118.00 Upgrades

Citigroup Neutral 0.00 95.00 95.00 Retains

Looking quite bullish.

Trading Statement

Highlights

· Growth in gross transaction value and like-for-like sales over the year including good progress in the last 10 weeks
· Ongoing gains in market share in clothing and non-clothing categories, including womenswear and beauty
· Online sales up 46.2% with 50bps increase in online market share
· Oxford Street flagship transformation on time and on budget
· Modernised stores performing well, 12 completed during the year
· Good international performance in the second half, especially from Magasin du Nord
· Profit before tax anticipated to be in line with current market expectations

Deutsche Bank Buy 105.00 105.00 100.00 115.00 Reiterates

Citigroup Neutral 105.00 105.00 95.00 95.00 Retains

JP Morgan Cazenove Overweight 105.00 105.00 - - Reiterates

Majedie Asset Management Limited < 5%

Final Results

Financial headlines
· Gross transaction value up 2.5%: UK up 2.3%, International up 3.7%
· Group like-for-like sales up 2.0%
· Group gross margin flat
· Profit before tax down 2.7% at £154.0 million
· Earnings per share up 4.1% to 10.2p
· Final dividend of 2.4p per share; full year dividend of 3.4p per share
· Share buyback continued in line with guidance: £40.2 million in last 12 months to date

Operational headlines
· Further progress made against the four pillars of our strategy to build a leading international, multi-channel brand, supported by prudent investment in key areas
· Market share gains achieved in clothing and non-clothing product categories both in stores and online
· Multi-channel continues to grow well ahead of the market with online sales up 46.2%, representing 13.2% of Group sales
· 12 store modernisations completed, transformation of Oxford Street into our international flagship store on track for December 2013 launch
· New Designers at Debenhams: Patrick Grant, Stephen Jones, Todd Lynn
· Good performance from Magasin du Nord

Societe Generale Buy 100.05 120.00 116.00 Reiterates

Barclays Capital Equal weight 100.05 100.00 97.00 Reiterates

JP Morgan Cazenove Overweight 100.05 118.00 118.00 Reiterates

Citigroup Neutral 100.05 95.00 105.00 Retains

If private investors don't have anything to say, --- this Thread appears to be clogged-up with worthy posters repeating Corporate Guff. But for that, it would be pretty empty.

This high street store has the problem that it doesn't "stand" for anything - it's certainly NOT a M&S, it's not a Primark, nor a Discount Shop - and for the well-heeled it's not Liberty, nor John Lewis . . . . so as a casual observer, I wonder what DEB really stands for? . . . and therein lies danger - folks go there for ideas and then shop on-line (( hence their on-line sales increase )) - so what is the point of the Retail, with it's cavernous idle spaces?
Also, when on-line they can be a click away for deserting . . . I'd go so far as to say that many On-Line sales are people "Net-Tripping" - a kind-of window-shop but with a credit-card . . . . Oh dear.

Hangon - when your buying clothes its nice to be able to try stuff online. OK so you can order online but who does that and can be bothered with sending stuff back, might just as well have bought from a retailer in the frst place once you factor in postage...

What a waste of money DEB bought back millions of shares in october all well above 100p (highest @ 113p) Current sp 83p ish.
2517

Interim management Statement

Trading performance

Debenhams plc, the leading international, multi-channel brand, today announces its interim management statement covering the 17 weeks to 28 December 2013.

As widely documented, the retail sector as a whole has been highly competitive with an unprecedented level of promotional activity. This is largely due to declining high street footfall, as evidenced by the BRC/Springboard Footfall Monitor, continued pressure on household incomes and the impact of unseasonal weather on clothing and clothing-related sales.

Against strong comparators from last year, we delivered Group gross transaction value growth of 0.7% and Group like-for-like sales growth of 0.1%. The better performing categories were beauty, home and gifting whilst clothing was weaker. Online sales continued to grow, increasing by 27.0% for the 17 week period and accounting for 15.6% of total sales compared with 12.4% for the same period last year. However, online delivery income was lower than anticipated.

Gross margin declined in the 17 weeks due to product category mix and higher markdown. We did not experience the anticipated final surge in sales in the last week of the period and as a result we expect the need for additional markdown to clear stock in January and February. Our expectation for gross margin for the first half is a decline of between 80 and 100 basis points.

Costs increased in line with guidance provided in October and the measures we introduced to improve online efficiency and reduce fulfilment costs were successful.

The above factors, combined with continued caution over consumer sentiment, means that we now expect profit before tax for the first half to be in the region of £85 million (H1 2013: £114.7 million adjusted for IAS19R).

Financial position

As previously highlighted, we have a clear order of priorities for the use of cash, namely (1) investing in the business, (2) paying the dividend, (3) reducing net debt/EBITDA and (4) share buyback. Given current trading, the board has decided to focus on the first three priorities and cease the buyback.

There have been no material events or transactions which have impacted the Group's financial position since the previously announced balance sheet dated 31 August 2013.

Michael Sharp, Chief Executive of Debenhams, said:
"As has been widely commented on in the media, the market was highly promotional in the run up to Christmas and we responded to these conditions to ensure our offer was competitive. However, this extremely difficult environment has inevitably had an impact on both our sales and profitability.

"Looking forward, I expect conditions to remain highly competitive as we enter 2014. Everyone in the organisation is focused on improving performance and growing the business, building on the four pillars of our strategy which I remain confident will lead to success over the longer term."

free stock charts from uk.advfn.com

Board Change

Debenhams plc announces that Simon Herrick has decided to resign from his role as Chief Financial Officer and as a director of Debenhams plc with immediate effect. He will leave the Company on 7 February 2014.

A search to find Simon's replacement is underway. Neil Kennedy, Director of Finance, will assume the role of Acting Chief Financial Officer on an interim basis.

Michael Sharp, Chief Executive of Debenhams, said: "On behalf of the board, I would like to thank Simon for his hard work and contribution over the past two years. We wish him well in the future."

-Ends-

Ehh no support left... Should be a good one for shorters, something telling me to steer clear though, looks overdone.

it's all about the dividend, can they maintain it?

Barclays Capital Underweight 74.88 75.15 80.00 64.00 Reiterates

buyers haven't a clue and this is almost de facto, a reflection of bad management

This co overpaid for shares (Buyback see earlier comments - but this is a common "fault" in the City
- they are v.good at wasting other folks' money ).
However their move to a new office is probably a good-move on paper,
but means yet more expense at a time when "Retail" is being bashed from all sides.....

I still do not understand where this Business is going
and I note one Exec has been pushed - BUT . . . was he the right one? . . . . some may think not!
At this level of woe, you cannot rely on the Yield - sure it reads good, but fundamentally it should be cut in the short-term at least ntil the new stores are ahead of the competition.
A definite Business-Model would be nice, as I can't really place them in the High Street, other than they do very good sales . . . by which I mean Good at selling-off - so why would anyone pay the New ticket-price, I wonder?
Recent sp recovery is folks seeking Yield, or av.Dn etc.....
Anyone know about "Bid" rumour - is it wishful dreaming?
EDIT-(8July2014)- Ooops! After their AGM (Dec13) sp was mid 80's, - now mid 60's - and "Refinancing" prob. means Bankers (or ? ) have the Lion's Share . . . . anyone think 50p is possible?

yield ?? remember WLW they had a great yield until they went to the wall.

They yielded alright, and then killed off.
2517

Nomura Neutral 77.25 77.25 112.00 85.00 Reiterates

Acquisition of a 4.63% stake in Debenhams plc

Sports Direct International plc ("Sports Direct" or "the Group"), the UK's leading sports retailer, announces that it has acquired a stake in Debenhams plc ("Debenhams"). Sports Direct has acquired 56.8 million shares, representing 4.63 per. cent of the issued share capital of Debenhams.

Sports Direct wishes to explore options at an operational level to work together with Debenhams to create value in the interests of both Sports Direct's and Debenhams' shareholders. This acquisition of shares has taken place without the prior knowledge of the Debenhams board of directors, but Sports Direct has communicated to Debenhams' board its desire to work together and its intention to be a supportive shareholder.

After the Sports Direct boost, sp has fallen to 75p again . . . any views on this?... as they are still trading. . . and M&S isn't exactly wiping the floor with Fashions.
Surely, L-T won't SD insist in some revision to DEB current operation?

Barclays Capital Equal weight 72.30 71.25 64.00 73.00 Upgrades

IMS on Friday 20th.

Interim Management Statement

Headlines

· Group gross transaction value: 14 weeks up 1.6% (15 weeks flat)
· Group like-for-like sales: 14 weeks up 0.7% (15 weeks down 1.0%)
· Continued growth in online and strong performance from international business
· Gross margin guidance for full year unchanged
· Strategy to refocus promotional activity delivering higher full price sell-through: summer sale starting two weeks later than last year
· Trials of new concessions including Sports Direct and Costa to commence before year end
· Commencing debt investor roadshow in relation to £200m 7 year bond issue

Refinancing Announcement

REFINANCING OF BORROWING FACILITIES

Debenhams plc, the leading international, multi-channel brand, has announced that it has refinanced its borrowing facilities.

Debenhams has priced its offering of £225 million Senior Notes (the "Notes") due 2021 at 5.25%. The offering was upsized from the £200 million aggregate principal amount announced on 20 June 2014. The offering is expected to close on 2 July 2014 upon the satisfaction or waiver of customary closing conditions. The proceeds from the issue and sale of the Notes, when completed, will be used to prepay existing credit facilities of Debenhams and to pay the fees and expenses related to the offering and sale of the Notes. The Notes will be guaranteed on a senior basis by certain of Debenhams' UK subsidiaries.

At completion, Debenhams will contemporaneously extend its existing bank financing arrangements to October 2018 in the form of a £425 million revolving credit facility.

The refinancing of borrowing facilities in this way will lead to an interest charge for the financial year to August 2015 of £22-24 million, in line with guidance provided on 20 June.

Michael Sharp, Chief Executive of Debenhams plc, said:

"This refinancing will allow us to reduce our reliance on traditional bank funding and fulfil our desire to diversify our sources of funding. In addition, we expect to achieve a material saving in interest costs over the life of the Notes. The Notes offering was well-subscribed and we believe the level of demand reflects the strength of investor confidence in our business and our strategy to build a leading international, multi-channel brand."

Barclays, Lloyds Bank and The Royal Bank of Scotland acted as Joint Global Co-ordinators and Joint Bookrunners. Lazard provided independent advice to Debenhams.

I'm confused - why would Banks accept lower interest - unless they feared the business would fold and they'd get Zippo?
The cost of this loan is likely to affect profitability at a time when they've spent a lot of money on a prestigious HQ and need to continue revamp Stores to encourage Sales ( er, sorry that's Customers).
At 59p today and nearer to £1 Sept. last year it looks like cutting the Div makes cash-flow sense - Oh deary. . . . and I don't see any "retail" regaining the upper hand too soon.
( But there may be a TO, which is a different game altogether; should someone else think they know better. )

Final Results

Financial headlines
· Gross transaction value up 1.7% to £2,823.9m
· Group like-for-like sales up 1.0%
· Group gross margin down 60bps: H1 down 100bps, H2 up 10bps
· Operating profit down 17.2%: H1 down 22.9%, H2 up 2.9%
· Profit before tax in line with market expectations
o Underlying profit before tax* down 20.6% at £110.3m
o Reported profit before tax down 23.9% at £105.8m
· Underlying EPS* down 19.6% to 7.4p, reported EPS down 22.8% to 7.1p
· Final dividend of 2.4p per share; full year dividend of 3.4p per share maintained
· Net debt improved by £10.5m to £361.5m
· Borrowing facilities refinanced including issue of £225.0m 5.25% seven year senior notes
*Before non-recurring finance cost of £4.5m (2013: nil)

Operational headlines
· Good progress made in second half against strategic priorities to deliver long-term sustainable growth and to address first half operational issues
o Refocusing of promotional strategy resulted in 10.6% increase in own brand full price sell-through in second half
o New online delivery options now fully available including next day click & collect and 10pm cut-off for next day delivery to home
o Encouraging early signs from UK space optimisation trials including Sports Direct, Costa, Monsoon and Mothercare
o More conservative sales targets and tighter buying levels resulted in 5.3% reduction in like-for-like closing stock
· Multi-channel continued to grow with online sales up 17.6%, representing 15.3% of Group sales, online EBITDA increased 20.5%
· Oxford Street transformation completed on plan and is trading in line with expectations
· Strong debut seasons from Designers at Debenhams Patrick Grant, Stephen Jones and Todd Lynn
· Good performance by Magasin du Nord and international franchise stores

StockMarketWire.com
Sports Direct International has sold its 4.6% stake in Debenhams - 56,381,164 ordinary shares - and entered into a put option agreement over 74,185,742 ordinary shares of Debenhams, 6.1% of the issued share capital of Debenhams).

To the extent that the market price of Debenhams' ordinary shares is less than an agreed exercise price on expiry of the put option, Sports Direct has the right to elect whether to settle the put option by acquiring ordinary shares in Debenhams at the exercise price or by paying the cash settlement value of the put option.

Under the terms of the put option, the company will receive a premium, which is payable on expiry of the put option. To the extent that the market price of Debenhams' ordinary shares is greater than the exercise price on expiry of the put option, Sports Direct will receive the premium and will have no further obligations.

Sports Direct is required to transfer cash collateral to cover its obligations under the put option. The amount of collateral required during the life of the put option can increase or decrease by reference to the underlying market price of Debenhams' ordinary shares. After taking into account the premium it will receive, the group's maximum exposure under the Put Option is limited to approximately £46m.

Stockwatch: "Look to buy" this share if wages rise

Interim Management Statement

Debenhams plc today announces its trading update for the 19 weeks to 10 January 2015.

Highlights
· Strongperformance in the key Christmas period: 4 weeks to 10 January
o LFL sales up 4.9%
o Online sales up 28.9%
· Record Group sales in the 7 days prior to Christmas
· Good performance on Black Friday within an existing Debenhams promotional event with sales in the week up 10.3%. Online orders on the day up 125%
· Good progress on the five priorities laid out at the Interims in April 2014
o 10 fewer days on promotion
o 12.1% increase in own bought full price sell-through
· Stock levels under control with terminal stock forecast at historically low levels

Nearly 1-year and no comments..... Oh dear.

Nov. 2015.
Directors buying shares, so presumably there's no News about to be made Public. However, I see that some Dirs are being given shares "free" - I can't say I like that unless it's in lieu of Salary - Since most Execs are paid v.well, without getting freebies.
DEB is still a messy store, but I read in IC their overseas operations ( e.g. JV in Saudi ....DYOR), is ticking up nicely..... so, someone likes what they want to sell.
EDIT(7July2916)- Woops! sp 52p and some Dir Buys . . . but with BrExit, won't their profits falter more? Customers may be feeling pinched, so put-off buying ( At higher prices, soon) . . . . so maybe we could see 40p . . . . by Sept16.... Oh Dear.
EDIT(12Dec2016)- It dipped to 54p ( DYOR ).
. . . . . . . . . . . Let's hope Xmas is good for DEB - sp 57p.
EDIT (12Jan2017)_ missing AGM ( s. Rail strikes, etc. )- but I see no Turnaround situation - sp abt 57p not exactly exciting.

CHRISTMAS TRADING UPDATE

"Beauty and Gifts support good Christmas performance"

Debenhams plc, the leading international, multi-channel brand, today announces its trading update for the 18 weeks to 7th January 2017.

Financial Highlights

· Group gross transaction value +3.7%; Group like-for-like sales as reported +3.5%
· Group like-for-like sales in constant currency +0.5%, including UK LFL +1.0%
· Online sales +13.9%, with two year growth of over 25%
· Gross margin within FY17 guidance of (25bps) to +25bps, sales mix continues to be dilutive
· Good performance in the 7 week Christmas period to 7th January:
- LFL sales +5.0%, +1.7% in constant currency
- Online sales +17.0%

Operational Highlights

· We have made further progress in growing non-clothing categories in line with our strategy. Beauty and Gift sales grew strongly to take the non-clothing sales mix in this period to 57%
· We have maintained market share in a competitive clothing market whilst continuing to reduce the number of clothing options as well as the level of discounts, with stocks down 7% year on year
· We have continued to reduce the overall participation of promotional activity, with a sixth season of reduced markdown and a 2% improvement in full price sell-through in the period. We again saw a successful Black Friday event with strong year on year growth both online and in our stores
· Momentum has strengthened in multi-channel sales growth, driven by smartphone demand up 68%, with an increased uptake in premium delivery services as our customers respond to the improvements we have introduced
· As planned, we have completed 75% of our current store space optimisation programme, and rolled out a further nine food service offers, launching two new partnerships, with James Martin Kitchen and Franco Manca, in the period
· Internationally, Magasin du Nord in Denmark saw a tougher trading environment whilst the Republic of Ireland has maintained steady performance after successfully exiting Examinership.

Sergio Bucher, Chief Executive of Debenhams, said:

"I'm pleased with the performance we have achieved in the key trading weeks of Black Friday and over the Christmas peak, given the challenges in the broader environment and the strong performance last year. The resilience of Debenhams' differentiated offer is beginning to show through, with the growth we have driven in beauty and gifting. It's encouraging to see that the service improvements we have made helped us to deliver strong multi-channel sales growth.

"I witnessed the hard work of the executive team and all our colleagues, who made sure that we were able to deliver a fantastic service for our customers over such a busy period, complementing the great choice of products and brands that we have to offer. There is a lot more we can do to build from this base and I'm looking forward to providing an update on our plans for Debenhams alongside our interim results in April."


more....

Cantor Fitzgerald Hold 56.48 55.00 55.00 Reiterates

Haitong Securities Buy 56.48 70.00 70.00 Reiterates

Liberum Capital Hold 56.48 58.00 58.00 Reiterates

Can't MoneyAM change the title of this discussion... as the Headline News is very much OUT-OF-DATE.?
Currently DEB is 44p - not looking too good.

Loaded with too much debt.

My problem with DEB is that I don't know what they stand for. Take M&S - quality underwear and ladies fashion that isn't fashionable...and//Food that rich-er folks buy because it tastes better..... probably along with the Restaurant ( even seen the price of a current-bun!).
DEB isn't AFIK a fashion hot-spot... indeed they appear to have a permanent Discount/Sale on - Whilst I'm no fashion-buyer I really don't know why I'd go to DEB - it appears to me to be overpriced "middling" - it's neither Long-Lasting ( as M&S clothing ), nor is it Trendy . . . . but I guess that DEBT is the unspoken reason for the sp slide. I bought a few at 75p (was it?), then it hovered and has only slipped badly since the new Chief started to flex muscles. Naturally any Root/Branch cuts will take time to benefit.... meanwhile their DEBT doesn't appear to have subsided..... Still there's hope...that it doesn't follow BHS . . . . and probably won't as I suspect the Folks running it are all on the level.... doing their best to turn the ship before the rocks break through the hull.
EDIT (24Jan2018)- Funny, I came across IC article for 2009 - and DEB was a Sell at 34p.....not much change there, then! - - - Today sp=29p Oh Dear, Oh Dear.

Debenhams warns on profit after price cuts fail to lure shoppers

Liberum Capital Sell 28.43 40.00 25.00 Reiterates

Liberum view: The company has not made any comment, at this stage, in relation to the press reports, although if the rumours are true it would not come as a great surprise to us. On the negative, it would suggest Debenhams' turnaround strategy to date has not been enough to improve its financial performance to help alleviate the ongoing pressures that have led to three profits warnings and a greater than 50% cut to consensus over the past 9 months. The group continues to rank poorly when looking at a variety of quality metrics – three year forecast EPS CAGR -25%, fixed charge cover (EBIT basis) 1.2x, operational gearing of over 20x and net debt:EBITDA 2.0x. If a positive were to be taken from this newsflow, we believe it is that management is now potentially looking at much more drastic action, which could bring about a more appropriately sized store estate and cost base quicker. This is exactly what we think is required for any successful turnaround to set the business on a path to achieve long-term sustainable profit growth.

IC this week suggested keeping away... pity as I'm already "in" +can't do much at 9p
Fact is Management has "watched the house burn down" (IMHO) . . . they need to be replaced at the very least AND maybe shift to on-line, with short-term "offers" to minimise stock-holding and rapid turnover their cash. But WhatdoIknow?
I think the warning was writ-large when they refurbished their HQ. + Exec discussed their carpets, desks etc. at length......forgetting their business was going to the skip!
EDIT (25Oct2018)-Oh deary, 50+ Store closures and no Divi! sp 9p.

StockMarketWire.com
Beleaguered UK department store group Debenhams on Thursday scrapped its dividend after reporting a full-year loss and said it would close up to 50 of its stores as it continued to grapple with a gloomy retail backdrop.

Faced with tough decisions on stores vulnerable to weaker financial performance, Debenhams said it would close up to 50 stores over 3-to-5 years, compared with the 10 previously identified, as part of a plan to cut costs to achieve profitable growth.

For the full-year to 1 September, the company reported a pre-tax loss of £491.5m, compared with a profit of £59m, like-for-like sales declined 2.3% and earnings (Ebitda) fell 27.5% to £157.3m, below earnings guidance of between £160m and £165m.

The swing to a loss was blamed on exceptional charges relating to the company's redesigned strategy and non-cash exceptional write-downs of £512.4m.

Underlying profit before tax fell 65.1% to £33.2m, below profit guidance of £35m-£40m.

The weak results were exacerbated by a 140 basis points decline in gross margin as the company slashed costs to keep up with competition.

'It has been a tough year for retail in 2018 and our performance reflects that. We are taking decisive steps to strengthen Debenhams in a market that remains volatile and challenging,' said Sergio Bucher, CEO.

'Debenhams remains a strong and trusted brand with 19m customers shopping with us over the past year. Our transformation strategy is gaining traction, with positive results from new product and new formats, general acclaim for our store of the future in Watford and digital growth that is outpacing the market.'

5p possible here.

DEB sp 6p.......I note that several large-retailers are closing stores. Yet I wonder how they can select One store against others - doesn't local events affect buying on the high-street? . If these are large ( Like a rival opening opposite!) - that's understandable, but unlikely to happen in these times.
M&S is another not-dissimilar large store with falling customers. Is this only because of on-line? - This is something we hear often in the News and by Execs trying to hold their jobs! . . . Yet many product need to be seen, felt and compared in the raw as it were.... something you don't need to do with many products which are "Me-too" types and (should) need no comparison, other than availability/price/etc.
DEB has been a real disaster starting with their refurbished HQ near Euston (DYOR) a few years ago when I noted that it's difficult to think of DEB for any particular strength. other than Reductions! . . . [ M&S was "food"]....
Yet executives all-round are "hoping for something to happen" rather than doing a stint in the stores as Recruits.... giving them valuable customer-insight. I guess at current sp we are just waiting for Administrators . . . .
Anyone...?
EDIT(20Dec2018)-sp abt 3p9 now..... are Execs asleep? (- er, "Still"? )

CHRISTMAS TRADING UPDATE



Debenhams plc today announces its trading update for the 6 weeks and the 18 weeks to 5 January 2019.

Financial Summary

· Against a challenging market backdrop, the Group is currently on track to deliver current year profits in line with market expectations[1], supported by further identified cost savings.

· Group gross transaction value for 6 weeks to 5 January declined (3.8)% with group like-for-like sales down (3.4)%. In this period, the UK declined by (3.6)%, with weak store footfall offset by growth in digital.

· For the 18 weeks, group gross transaction value declined (5.6)%, with LFL down (5.7)%. The UK was down (6.2)% with International down (3.5)%. Digital sales have grown by 4.6% across the period.

· The UK trading environment has continued to be volatile, as expected, with clear evidence that our customers have been seeking out promotions. As a result we reinstated some tactical promotional activity in order to be competitive and manage inventory tightly, which will result in some gross margin erosion in the first half.

· We continue to generate cash, with net debt as at 5 January of £286m, within the context of our total committed debt facilities of £520m.

· In light of the requirement to refinance existing bank facilities within the next 12 months, constructive discussions have commenced with lenders, and the group has put on hold any further asset disposals until the outcome of those discussions is known. This process includes options to bring new sources of funding into the business to ensure the appropriate capital structure. We will update on progress with these plans shortly.

Strategic priority update

· After a slow start to the season, group digital sales rose 6.0% in the 6 week period over peak against a strong comparative performance, delivering two year growth of over 20%. This was supported by improved mobile conversion and customer experience.

· New Beauty strategy drove more choice and digital innovation supporting growth in market share in skincare[2] to mitigate decline in premium make-up market.

· Revitalised product has driven improved market share in womenswear[3]; and differentiated gift offer delivered an improved margin performance over peak, with food sales also delivering overall growth of 2% in the 18 weeks.

· Nine stores trading in new design format have outperformed the core chain, with the strongest LFL uplift being seen at Stevenage.

· Previously announced cost savings of an annualised £50m, rising to at least £80m taking into account additional opportunities identified.

Liberum Capital Hold 5.32 10.00 Reiterates

Update on refinancing discussions