Highlights

1. Compares to £3.0bn for FY2017.
2. Pre exceptional items of £524.7m, statutory loss before tax of £491.5m, refer to page 36 for further detail.
Financial Highlights
Gross transaction value1 £2.9bn
Profit before tax2 £33.2m
Net debt £321.3m
Strategic Highlights
Digital sales growth 12.3%
Beauty sales decline (0.8)%
UK Food sales growth 9.6%
Shareholder Returns
Underlying EPS 2.2p
Dividend per share 0.5p
ROCE (lease-adjusted) 9.4%

At a glance

Evidence of progress in Debenhams redesigned
Sergio Bucher, CEO
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Rigorous cost and capital discipling
Financial Review
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Social shopping
Strategy in action
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Corporate Responsibility & Risk
Sustainability & Risk Management at Debenhams
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Chair of Remco's introduction to remuneration
Remuneration report
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Stakeholder engagement
Governance in action
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Business model

What we do

We aim to make shopping confidence-boosting, sociable and fun for our customers, through our 240 department store destinations and online in more than 90 countries. We give our customers around the world a unique, differentiated and exclusive mix of own brands, international brands and concessions.

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  • Our recources and
    relationships
    People

    We employ around 26,000 colleagues in the UK, the Republic of Ireland, Denmark and in our sourcing offices in Hong Kong and Bangladesh. They support our own-operated stores in the UK and Europe and our digital operations, and serve around 19 million customers

    Expertise and Insight

    We recruit and train experts in design, buying and merchandising, supported by excellent creative, marketing, logistics, financial and administrative functions. Our customer insight unit provides us with valuable feedback on our customers’ spending habits and their view of our offer

    Channels

    We have 182 stores across major retail locations in the UK, the Republic of Ireland and Denmark. We also have franchised stores across a number of international markets, particularly in the Middle East. We have a flagship digital store in the UK and a localised online service in a number of overseas markets. Our UK website is one of the top online UK retail destinations with over 300 million visits each year

    Suppliers and Partners

    We have a well-established network of more than 1,000 suppliers, as well as concession, logistics and franchise partners, who provide us with high quality product, logistical support and local market expertise in locations where we trade with a partner

    Finance

    We have a strong balance sheet, with flexible financing provision through a £320 million financing facility and a £200 million bond, which are available until 2020 and 2021 respectively. These resources are more than adequate to provide working capital and support our capital spending programme including investment in our strategic priorities.

  • How we create value today
    & The value we create
    Innovation and Culture

    We are developing a culture that puts our customers first, enabling product creation and development in an inspiring environment, supported by data-informed decision-making

    Developing and managing brands

    Approximately half our sales come from our own or exclusive brands. We use the insight from 19 million customers to inform brand development, and to edit and curate the choice of products and brands we sell

    Serving our customers

    We have worked hard to make shopping easier and more fun for our customers: reducing colleague tasks; equipping them with technology and data; and giving them more time in front of customers

    Creating inspiring places to shop

    We are reducing clutter in our stores, reducing stock options and improving visual merchandising. We have continued to upgrade our digital presentation for mobile display, to improve conversion

    Leveraging partnerships

    We continue to strengthen our relationships with third parties to broaden our reach. This includes accessing new customers both in the UK and overseas through partners for our own brands, and working with service providers to exploit growth categories, such as food and beauty services in our stores

    We create value for our stakeholders and our business by carefully managing the use of, and the return on, our resources and relationships

    Gross transaction value £2.9bn
    EBITDA* £157.3m
    Underlying EPS* 2.2p
    Digital sales growth 12,3%
    Return on capital** 9,4%
    Direct employment c26,000
    Before exceptional charges. Lease-adjusted.
  • The value we share

    By running a profitable, sustainable, responsible business, we create value which is used to strengthen our financial position, invested to enable growth and shared with all of our stakeholders

    Customers

    We invest in our stores and integrated digital offer(2018 capex of £143.5 million in order to provide our customers with an inspiring environment and a convenient customer journey

    Shareholders

    We have paid a dividend (2018: £35.6 million) although the board has decided not to pay a final dividend to retain cash in the business and reduce debt at this time

    Colleagues

    We invest in training and support for our colleagues in order to enable them to create and manage brands and to serve our customers well

    Suppliers

    We source globally from more than 1,000 suppliers adopting ethical trading principles. We have increased our business through direct sourcing operations in Hong Kong and Bangladesh

    Communities

    We raised £1.3 million through Group activities in 2018 to support charitable giving and community involvement

    Environment

    We seek to operate our stores, logistics and sourcing operations in a way that minimises the use of energy and resources

  • How we aim to maximise value
    through our new strategy
    debenhams social shopping
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    Destination

    By making Debenhams more of a Destination, especially for Beauty and beauty services; Fashion and accessories; and Food and events, we will grow “Social Shopping” and increase frequency of visits

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    Digital

    By using mobile to integrate our channels and become the primary means of interacting with our customers, we will increase loyalty and personalisation and broaden our reach

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    Different

    By being different in how we create and manage our brands and product, we will increase innovation and differentiation, building the desirability and value of our brands

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    Underpinned by Simplify & Focus

    By simplifying our operations and processes and focusing on doing fewer things better, we will increase the efficiency of our business

  • Our value creation
    is underpinned by
    Risk management

    A systematic approach to managing
    risk to ensure strategic goals are met

    Governance

    Governance framework designed to
    safeguard long-term shareholder value

    Sustainability

    Introducing “doing our bit”, Debenhams’
    new approach to CSR

    Culture

    Taking a customer first approach, fostering
    innovative thinking underpinned by data