The Press and Journal (Aberdeen and Aberdeenshire)
Debenhams finance boss quits
Retail: Chief financial officer resigns just days after profits warning
Debenhams’ finance boss handed in his resignation just days after the department store chain issued its shock profits warning following dismal Christmas trading.
Simon Herrick’s resignation yesterdayfromthe role of chief financial officer will take place with immediate effect although he will not formally leave the retailer until February 7.
There was no reason given for his departure, but t he move came after Debenhams warned on Tuesday that profits were expected to fall by as much as 26% due to its failure to entice a rush of shoppers in the days leading up to Christmas, sparking a 12% shares slide.
Debenhams chief executive Michael Sharp insisted on Tuesday the chain was battling against an “extremely difficult environment” that led many retailers to slash prices in the festive run up.
The group also blamed bad weather for having an impact on clothing sales, which fell over the 17-week period.
But rivals John Lewis and House of Fraser reported buoyant trading over the period, which is likely to increase pressure on Mr Sharp.
House of Fraser hailed its best ever Christmas with comparable store sales up 7.3%, while JohnLewis said like-for-like sales climbed
“We believe the major issues are company specific”
6.9% over the five weeks to December 28.
Analysts at Numis said the “extremely difficult environment” blamed by Debenhams for its woes were only part of the story.
“While there is undoubtedly some truth in this, we believe that Debenhams’s major issues are morecompany specific.”
They also noted that the trading update from John Lewis gave no details on margins, but that it would not be surprising if these were down given the competitive environment.
The analysts said there was “some scope for disappointment” among other clothing retailers, espe- cially those which resorted to early discounting. However, a full-price commitment from Next meant it looked at less risk than most. We are confident that the strong updates from House of Fraser and John Lewis will put them both firmly in the ’winners’ column this year, but see enough to suggest that Debenhams’ problems are more company- specific than market-led.” Mr Herrick’s departure comes after just two years in the role. MrSharpsaid:“Onbehalf of the board, I would like to thank Simon for his hard work.”