British fashion retailer Debenhams , 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, said Reuters.
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.
