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Debenhams Posts Earnings Jump as Turnaround Gathers Pace
The retailer said sales improved at key brands and it expects continued earnings growth after cutting costs and selling assets to reduce debt.
- British fashion retailer Debenhams Group reported a 13.9% rise in first-half core profit on Thursday, driven by its marketplace model shift and renewed growth at PrettyLittleThing, Boohoo, and Karen Millen.
- The iconic brand has been undergoing a turnaround to address high debt and declining profitability, shifting to a capital-light marketplace model to boost margins and secure £100 million in cost savings by next year.
- Debenhams reported adjusted core profit of £24 million for the six months ended August 31, while growth accelerated to 2.9% in the latest quarter and exceptional costs fell 83.5% to £4 million.
- Recent disposals, including the Sheffield warehouse sale for £90 million and Nasty Gal brand sale for $16 million, mark significant steps in reducing leverage. Boss Dan Finley stated these actions help reduce net debt to negligible levels.
- Bosses reiterated guidance for double-digit adjusted EBITDA growth and free cash flow in full-year 2027. Finley expects "continued material improvement" in earnings, with net debt reaching negligible levels by February 2027 year end.
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Debenhams: Boohoo owner hails Yorkshire warehouse disposal as ‘significant step’ in turnaround
Debenhams has hailed the disposal of its Sheffield warehouse as a “significant step” in its transition, as the company said it now expects its net debts to be "negligible" at the end of the year.
·Leeds, United Kingdom
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Debenhams swings back to profit as turnaround gathers pace - London Business News
Online retail group Debenhams has returned to profit at the earnings level as sales accelerated, with management forecasting further improvement as its cost-cutting programme and wider turnaround gather pace. The… The post Debenhams swings back to profit as turnaround gathers pace appeared first on London Business News
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Total News Sources11
Leaning Left3Leaning Right0Center4Last UpdatedBias Distribution57% Center
Bias Distribution
- 57% of the sources are Center
57% Center
L 43%
C 57%
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