Executive Summary

• UK-based department store chain Debenhams reported that gross transaction value declined by 1.0% year over year in 3Q17. Constant-currency comparable sales declined 2.4%.
• Following weak 3Q17 sales, the company expects to deliver FY17 profit before tax (PBT) within the current range of market expectations, but warned that PBT could be toward the lower end of the range.
• Gross margin guidance for FY17 was unchanged, whereas cost guidance tightened to a 3% increase, or a 1% increase in constant currency.