DIYWEEK.net

UK segment sales at the multi-channel brand were up 2.6% for the 52 weeks ending September 1, 2012.
Group like-for-likes were up 2.3%, statutory revenue was up 2.5% and online sales saw a massive 39.8% boost.

While gross margin percentage was down 30bps, this was "in line with guidance," according to Debenhams bosses, operating profit, meanwhile, remained flat at £175m.

Profit before tax shot up 4.2% to £158.3m and net debt improved by £15m to £368.7m following a £20.1m share buyback.

Key achievements for the retailer over the year included the modernisation of 18 UK stores, the opening of two new outlets in the UK and seven overseas, bringing the total to 239. Market share gains were achieved across product categories, "particularly non-clothing."

The retailer is continuing to invest in multi-channel, having launched the "Endless Aisle", which lets etail shoppers buy stock held in stores as well as its online stockroom. Free wi-fi is also now available in every store.

Debenhams chief executive Michael Sharp said: "We have made good progress in 2012, achieving higher sales and earnings growth despite a very difficult market.

"I believe the strong sales momentum we achieved in the second half of 2012 is clear evidence that our strategy to build a leading international, multi-channel brand is working and this has prompted us to be more ambitious with our medium-term targets for the growth of our online and international operations.

"Looking forward, we believe that customers are acclimatised to the new economic reality. Whilst we don't anticipate a significant change in the economic environment in 2013, we expect to make further progress during the year."