Debenhams Reports Ongoing Growth After Shift to Marketplace Model in 2024
Main Highlights of Debenhams' 2024 Performance
July 14 (Reuters) - UK's Debenhams Group said on Tuesday that positive trading momentum continued through June and July, supported by improving sales margins and lower customer returns, as the online retailer's turnaround strategy gained traction.
Marketplace Model Drives Growth
Here are some details:
Gross Merchandise Value (GMV) and Sales Performance
• The British retailer, which returned to gross merchandise value (GMV) growth in the first quarter, said GMV has continued to grow year-on-year as it shifts to a marketplace model to counter weak consumer demand and competition from low-cost fast-fashion rivals.
Platform Model and Product Assortment
• "Our platform model and diversified product assortment enables us to pivot quickly and capitalise on consumer demand. This has been especially so on Debenhams during the recent hot weather," CEO Dan Finley said in a statement.
Brand Portfolio and Division Performance
Young Fashion Division Turnaround
• The retailer, which owns brands including Karen Millen and Boohoo, said its Young Fashion division was turning around with PLT returning to growth and profitability.
Financial Outlook and Strategic Initiatives
Debt Reduction and Future Growth Potential
• The company expects net debt to be "materially lower" this year through improved trading and sales of remaining non-core property assets and also sees potential for Debenhams to become a "multi-billion-pound GMV business with £100 million-plus EBITDA" in the medium term.
Brand Rebranding and Profit Forecasts
Impact of Boohoo Rebranding
• Since Boohoo rebranded as Debenhams in 2025, the iconic brand's turnaround strategy and efforts to offset supply-chain pressures have prompted two profit forecast upgrades in recent months.
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Sherry Jacob-Phillips)
