Michael Sharp is the new chief executive of Debenhams and has recently presented a report that offers a trading update on the company before it announces its end of year results. It has reported that sales are up nearly 3%. This is expected to cause analysts to raise their predictions for the pre-tax profits for the company by £7 million to £165 million
Mr Sharp has said, “Our decision to maximise our profits has been very successful and because of this we fully expect our profit figures to be ahead of what analysts are currently predicting.” The company has recently gained fifty basis points in its market share after it launched its summer sale five days earlier than normal.
The announcement was also made that the Jane Norman brand will be being replaced with new ranges by some of the people designing for Debenhams. One of the lines will include H!, by Henry Holland. Jane Norman was listed for sale back in June.
Debenhams has announced a plan to move its headquarters to a new location and is currently renovating six of its stores. It has also recently announced that it will be refitting its main store on Oxford Street in 2013.
Seymour Pierce retail analyst Katie Calvert has said, “These revised figures are making us recalculate our figures for what we estimate the profit from the company to be. We expect it to be around five to seven million pounds higher than previously estimated.” Analysts have also changed the company’s net debt figure, reducing it by £130 million.
Mr Sharp commented, “We are being cautious because we know that consumer confidence is low because of the state of the economy. That said however we are focusing on the retail basics and offering customers some great products.”