Online retailer Debenhams Group “returned to growth” in the first quarter after the “heavy lifting” of its turnaround strategy began to pay off.
The retailer, whose businesses include Boohoo and PrettyLittleThing as well as Debenhams, reported that group gross merchandise value edged up 0.5% year on year in the three months to May 31.
Trading was “particularly strong” in May, when gross merchandise value climbed 8%. Performance then was “most notable across the Debenhams brand and PrettyLittleThing, with improvements also achieved in Boohoo, BoohooMan and Karen Millen”.
Debenhams said the performance was ”supported by materially improved profitability and significantly improved cash flows”. Gross margin increased to 53.5% from 52.1% the previous year and returns were down 5%.
Chief executive Dan Finley said: “Debenhams Group has returned to growth, and Q1 marks the inflection point we have been working towards. This is the result of the heavy lifting of our multi-year turnaround: the move to an asset-light marketplace model, the warehouse consolidation, the cost reset, and the rebuild of every brand on a single proprietary platform.
“With the cost out ahead of plan and strong momentum carried into the year, the board’s confidence has grown and we are reiterating our guidance of double-digit adjusted EBITDA growth in FY27.”
Debenhams will publish results for the recently ended year in the next fortnight.
No comments yet