Debenhams: Online sales growth bolsters department store revenue
Clothing retailer Debenhams saw a surge in online sales of 16.7% in the 15 weeks to 13 June 2015 compared to the same period in 2014.
The online sales growth bolstered department store and franchise sales, as Debenhams reported that overall group like-for-like sales saw no change.
Chief executive Michael Sharp said in a press release: "Our wide product choice, clear destination departments and improving service proposition gives us a strong platform from which to deliver long term sustainable growth."
The company stated that it is working on partnerships with other companies as well as more competitive delivery charges, which is vital to keep up the online success.
Sharp said that he expects the rest of the financial year to pick up because of the right investments made by the company. He said: "We have made good progress on our strategic priorities, and remain on track to deliver results in line with market expectations."
Debenhams also reported that its Danish department store, Magasin du Nord, performed very strongly and hinted at more international expansion in the future.
Brenda Kelly, head analyst at London Capital Group, said in an analyst statement regarding the trading update: "Sales were fairly flat in the third quarter owing to an overhaul in its promotion strategy and a cautious consumer ... The promising outlook for the full year may see shares push back to the highs in the near term."
© Copyright IBTimes 2024. All rights reserved.