The chief executive of Debenhams, Michael Sharp, has announced that he will be stepping down in 2016 after five years at the helm of the department store chain.
Mr Sharp said that it had always been his intention to serve just five years and said that it was the “right time” for the board to commence a succession planning process so that he can step down sometime in 2016.
Under Michael's leadership Debenhams has been delivering a four-pillared strategy to build a leading international multi-channel brand, validated by positive results for the year to August 30th which it released today.
Group like-for-like sales for the period were up 2.1% in constant currency, with a 4.3% rise in operating profit, reflecting “good cost control”.
Meanwhile, profit before tax was in line with market expectations, up 7.3% to £113.5 million.
Debenhams said that the results were in line with market expectations and show progress continues to be made against all strategic priorities which include more focused promotional activity, improvements to the multi-channel offering, the opening of five new UK stores this autumn, including Bradford where Debenhams will be the city's only department store and the strongest-ever brand launch with Nine by Savannah Miller now in 65 stores for autumn.
Michael Sharp, chief executive of Debenhams, said: "We have delivered profits in line with market expectations, reflecting further progress against our strategic priorities. We have had an encouraging start to the year, with strong new product launches which have been well received by our customers, and we are in good shape to build on last year's strong performance over peak trading.
"Consequently, we are increasingly confident in the direction of the business and as a result we will accelerate our new initiatives, such as the roll-out of our successful space optimisation trials and new international growth opportunities.
"We have clear priorities for the uses of cash and our continued strong cash generation has enabled us to improve our leverage target and to adopt a progressive dividend policy as future earnings increase.”
