Insight Report 3 minutes Premium

Debenhams (LSE: DEB) FY18 Results: Substantial Exceptional Charge Drives £492 Million Pretax Loss; Confirms Plans to Shut 50 Stores

Executive Summary

  • For FY18, Debenhams reported a 2.7% decline in comparable sales at constant exchange rates, with a weak performance in its core UK market driving this decline.
  • The company booked a £525 million charge for asset and goodwill impairment and onerous lease provisions, resulting in statutory pretax losses of £492 million.
  • Even after stripping out these exceptional items, underlying EPS decreased by 65.6% year over year.
  • Debenhams confirmed media speculation that it plans to shut 50 stores in the next three to five years.

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