Debenhams Group hails return to growth as turnaround accelerates
Debenhams Group has said its multi-year turnaround accelerated in its first quarter as it made a return to growth.
In the three months to 31 May, group gross merchandise value edged up 0.5% year-on-year while gross margin expanded to 53.5% from 52.1% in the prior year.
Subscribe to TRBThe group said May trading was particularly strong with gross merchandise value growth of around 8%. The best performing brands were Debenhams and Pretty Little Thing, although improvements were also seen across Boohoo, Boohoo Man and Karen Millen.
Dan Finley, Debenhams Group chief executive, said: “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.
“That work is now translating into materially improved profitability, with adjusted EBITDA margin expanding and a substantial increase in adjusted EBITDA in the period, alongside significantly improved cashflows.”
Debenhams said the “strong momentum” in the first quarter is underpinning its confidence in delivering double-digit percentage growth in full year adjusted EBITDA from the £53 million guided for FY26 in March.
