Debenhams reports improved profitability following strategic pivot
Debenhams has reported a 36% increase in adjusted EBITDA to £53 million for the year to 28 February.
This is ahead of the group’s previous guidance issued on 28 January and follows adjusted EBITDA growth in its second half of 76%.
Subscribe to TRBDebenhams is currently transitioning to an asset-lite model through a marketplace which remains at the heart of its turnaround plan.
Dan Finley, Debenhams group chief executive, said: “Our multi-year turnaround strategy continues at pace.
“We are pleased with the 76% increase in H2 adjusted EBITDA and £53 million full year adjusted EBITDA. Our pivot to the stock-lite, capital-lite, highly profitable marketplace is working.
“The cost base has been reset, the warehouse consolidation completed, the tech re-platform delivered, the stock base rightsized, most of the onerous costs exited and the brand management teams strengthened.
“This is significant progress, ahead of our plan, but there is still more to be delivered and we now focus on growth.”
Debenhams said it remains confident of delivering double-digit adjusted EBITDA growth in the year ending 28 February 2027.
