UK's Debenhams returns to growth, lifting profits and shares (updated)

Boohoo

03/06/2026 07:19

First-quarter GMV rises 0.5%, May GMV grew 8%
Debt cuts on track, double-digit profit growth forecast for 2027
CEO highlights better profits, strong cashflows from turnaround efforts
Shares rise over 10%
Adds shares in paragraph 1, details on turnaround, forecast from paragraph 5 to 6, analyst comment in 7
June 3 (Reuters) - UK online fashion retailer Debenhams Group DEBS.L returned to growth with a 0.5% rise in first-quarter gross merchandise value along with a "substantial" increase in core profit, it said on Wednesday, lifting the shares over 10%.
    The improvement, with GMV up about 8% in May, was led by the Debenhams and PrettyLittleThing brands but also seen across its Karen Millen and Boohoo brands.
The retailer has been cutting costs and shifting to a marketplace model as part of its turnaround plan to address supply-chain challenges, weak demand and increased competition from low-cost fast fashion.
"That work is now translating into materially improved profitability," CEO Dan Finley said, pointing to a "substantial" increase in adjusted core profit and significantly improved cashflows in the quarter.
At 0742 GMT the company's shares were up 10.4% at 20.75 pence having fallen over 7% in the last 12 months.
The retailer said its debt reduction target remains on track through planned disposals of assets including its Burnley property and a U.S. warehouse, alongside improved trading cashflow this year.
It also reaffirmed its expectations for double-digit percentage growth in annual adjusted core profit and free cash flow for fiscal 2027.
"The trajectory has been evident for some time now but it’s a major inflection point," said Panmure Liberum analyst Wayne Brown, noting the shares are not reflecting the turnaround.    

 (Reporting by Raechel Thankam Job in Bengaluru; Editing by Sonia Cheema, Nivedita Bhattacharjee and Elaine Hardcastle)
 ((RaechelThankam.Job@thomsonreuters.com;))