Debenhams upgrades profits forecast in sign turnaround is gathering pace
Debenhams has upgraded its profit hopes for this year in a sign that a turnaround is gathering pace.
The online retailer, where Sex and the City star Kim Cattrall fronts a fashion campaign, changed its name from Boohoo last year.
It said it expects underlying earnings to rise by 36 per cent to £53million for the year to February 28, compared to a previous expectation of £50million.
Sales fell 5 per cent in the three months to the end of February, but the business said it was an improvement on the previous quarter, when sales had fallen even further.
Boss Dan Finley said: ‘Our multi-year turnaround strategy continues at pace. Our pivot to the stock-light, capital-light, highly profitable marketplace is working.’
Last year, he pledged to use the Debenhams brand as a ‘blueprint’ to transform the ailing fortunes of the wider group, whose brands include Gen Z-focused online retailers Boohoo and PrettyLittleThing.
Style icon: Debenhams, where Sex and the City star Kim Cattrall fronts a fashion campaign, changed its name from Boohoo last year, pictured,
Fast-fashion firm Boohoo bought department store chain Debenhams out of administration in 2021, dispensing with its shops in a major blow to the High Street and switching online.
The group has been moving away from holding large amounts of its own stock and towards a marketplace model, where third-party brands sell through its platforms in exchange for a fee.
Finley has already been slashing costs and said last summer that the business had achieved £50million in annual headcount savings.
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