Debenhams boss hails ‘continued positive trading’ ahead of AGM

In a trading update this morning, Finley said the group has delivered two guidance upgrades in nine months, which has “shown that our multi-year turnaround continues at pace”.

With GMV continuing to grow year on year, Finley stated the group’s “platform model and diversified product assortment enables us to pivot quickly and capitalise on consumer demand”, particularly during the recent spate of hot weather in the UK.

Finley also said that PLT has “returned to growth and profitability” while Karen Millen “remains a quality brand with a significant global potential”.

Looking ahead, Finley noted: “Over the course of this year, investors should expect to see much better conversion of adjusted EBITDA to reported EBITDA and to operating profit as the major costs of the transformation have now passed. This will be a particular feature of our H1 results.

“In the medium term, we see the opportunity for our Debenhams brand to become a multi-billion GMV business with a £100m+ EBITDA. In Young Fashion, returning to growth, strengthening the proposition and continuing to improve the profitability mean that they can become material contributors to group profitability again. Karen Millen has significant value.”

The trading update comes ahead of Debenham Group’s scheduled AGM today, where the business is likely expecting more trouble from majority investor Mike Ashley.

Ashley, who owns a near-30% stake in the brand formerly known as Boohoo through Frasers Group, has long been in a bitter feud with the management of the business he once sought to acquire.

Frasers demanded the removal of the group’s chair Mahmud Kamani and replacement with Ashley in 2024, called its appointment of Finley as CEO “desperate” and then tried to block the group’s rebranding to Debenhams in 2025.

Earlier this year, Debenhams attempted to lock Ashley’s representatives out of executive pay votes, calling Frasers Group an “activist shareholder”.