Debenhams’ like-for-like sales were flat for the 16 weeks to June 23, resulting in the weakest sales results in over two years for the department store
In a trading update released today (June 27) the department store said group gross transaction value increased by 1%.
However stagnant sales resulted in the weakest sales results in over two years, following eight consecutive quarters of growth.
Online sales increased by 40%, accounting for 14% of total sales. The period saw a 21.7% increase in traffic to Debenhams.com
Chief executive Michael Sharp said the company has given a “robust performance” in a “challenging and volatile period.”
Damp weather was blamed for the disappointing sales figures, which were 2% below market expectations.
A weekly breakdown of sales shows “close correlation” between lower like-for-like sales in March and April and “unseasonably cold temperatures”.
Debenhams increased its fashion market share by 20 basis points (bps), with womenswear up 10bps and menswear by 40bps.
The department store is continuing its international expansion plans, with 62 franchise stores in 24 countries.