Online fashion and beauty player Debenhams Group expects full-year earnings to beat expectations after trading strongly, and will no longer sell its PrettyLittleThing business.
Debenhams, the owner of brands including Boohoo and Karen Millen, reported that trading in the financial year that closes at the end of February has been “above expectations” and full-year adjusted EBITDA is expected to come in at £50m – up £5m on previous guidance.
Debenhams also said it will now retain PrettyLittleThing (PLT), following a successful turnaround and “material improvement in profitability”.
The retailer, which still intends to sell “non-core assets” to reduce debt, said the group’s performance was “a result of the continued momentum in our Debenhams brand, a discernible improvement in the performance of our youth brands and accelerated progress on our transformation plan”.
Debenhams was “particularly pleased with the pace and scale of PLT’s turnaround” and the resulting improvement in profitability. It said: “The board had previously held the brand as an asset for sale. Given the success we are seeing with the turnaround, the momentum it is building and the substantial opportunity ahead as a fashion-led marketplace, the brand will be retained.”
Alongside potential asset sales, Debenhams is “exploring significant licensing opportunities” and will provide an update in March.
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