UK's Debenhams returns to profit after five years, expects further cost cuts
UK's Debenhams returns to profit after five years, expects further cost cuts Oct 23 (Reuters) - British fashion retailer Debenhams DEBS.L, also known as boohoo, reported a profit for the first time in five years on Friday and expects further cost cuts as a turnaround plan gathers pace.
Here are some more details:
The company reported pretax profit of £28.3 million ($37.89 million) for the six months ended August 31, compared to a loss of £17.9 million a year ago, its first profit before tax since August 2021
Expects to reduce costs related to depreciation, lease and interest in fiscal year 2028, while a new financial facility should further cut costs
Debt to be negligible by the end of the year thanks to the disposal of Sheffield automation and lease assignment and sale of Nasty Gal brand, the retailer said
The company reported steady growth in September and reiterated its previous annual forecast of gross merchandise value (GMV) growth and adjusted core profit no less than £59 million
It expects to deliver more than £100 million in profit before tax in the medium term and become a multi-billion-pound GMV business
The group's turnaround plan has been focused on streamlining its operations to tackle mounting debt and slow demand at its youth brands
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(Reporting by Simone Lobo in Bengaluru; Editing by Harikrishnan Nair)
((Simone.Lobo@thomsonreuters.com, +919920570373))