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Debenhams chief bows out

Debenhams chief executive Michael Sharp has announced his exit alongside the group's annual results
October 23, 2015

The news that Debenhams (DEB) chief executive Michael Sharp will leave the retail chain next year more than overshadowed the group's latest set of results. Mr Sharp said he will stand down "at some point in 2016" after serving five years in the role - a timeline he maintained was always his intention. But news of the departure followed widespread reports of shareholder discontent at Debenhams regarding the lack of profit growth or share price momentum under Mr Sharp's leadership. By announcing his exit, the outgoing boss said he hoped to put an end to the speculation before it became a "distraction". No comments were made regarding his future plans, his successor or his final remuneration.

IC TIP: Buy at 85.2p

As far as the numbers go, last year's figures comfortably met analysts' expectations. Like-for-like sales grew 2.1 per cent at constant currency or 0.6 per cent at actual exchange rates. Many have criticised the high level of promotional activity at Debenhams, but Mr Sharp said the group cut the number of promotional days by 17 last year, taking the total to 42 fewer such days since spring 2014.

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