Online fashion firm Debenhams has hailed a “year of significant and successful transformation” as it narrowed losses despite a further fall in sales.
The retail group, which also owns Boohoo and Pretty Little Thing, said its major turnaround programme has continued “at pace”.
Boss Dan Finley said the turnaround is “on track” after significant cost cutting, the closure of one of its warehouses and improvements to its tech platform.
The company reported a £108.3 million pre-tax loss for the year to February 28, reducing from £326.4 million a year earlier.
It was linked to a sharp reduction in exceptional costs during the year.
Debenhams said its Pretty Little Thing brand returned to profit over the year, with the group having halted a potential sale process for the brand earlier this year.
Meanwhile, group revenues slid by almost a quarter, 24.7%, to £917 million for the year, partly linked to the group’s shift to a higher-margin marketplace model.
Gross merchandise value (GMV) before returns, the group’s preferred sales measure, was down 21.6% at £1.82 billion for the year, compared with a year earlier.
Decline was driven by the group’s youth brands operation, which includes Pretty Little Thing and Boohoo, reporting a 35.8% slump in GMV.
But its Debenhams brand continued to drive growth, with GMV up 11.6% to £730 million for the year.
The group said it returned to growth in the first quarter of the new financial year, with GMV up 0.5% over the three months to May, including 8% growth in May.
Debenhams said it has seen further “strong” trading in June so far.
The group said it is on track to have delivered £100 million worth of cost savings over the period to 2027 as it continues with efforts to return to profit.
Mr Finley said: “This has been a year of significant and successful transformation for Debenhams Group.
“Since my appointment as group chief executive in November 2024, I have been sharply focused on executing our multi-year turnaround strategy – and the progress is clear.
“Our focus now shifts to growth, and the turnaround continues at pace, with momentum in our multi-year strategy accelerating since year end.”
