14th Jul 2026 11:13
(Alliance News) - boohoo Group PLC on Tuesday said it expects debt to be "materially" lower in the current financial year as it reported continued strong trading.
The Manchester, England-based online fashion retailer, which trades as Debenhams, said trading was "positive" trading through June and July with gross merchandise value growing year on year, margins up and returns down. It said it has been able to capitalise on consumer demand during the recent hot weather.
Young Fashion is "turning around" with Pretty Little Things returned to growth and profitability, while Karen Millen remains a "quality brand with significant global potential," the firm said.
Shares in boohoo rose 4.1% to 24.99 pence each in London on Tuesday.
As a result of improved trading and the sale of non-core property assets, boohoo expects net debt to be materially lower in the current financial year.
Chief Executive Dan Finlay said boohoo is committed to reducing debt to below 1 times adjusted earnings before interest, tax, depreciation and amortisation in the financial year ending February.
"With strategic brand licensing opportunities and potential business disposals, there is the opportunity to eliminate the debt," he added.
"Over the course of this year, investors should expect to see much better conversion of adjusted Ebitda to reported Ebitda and to operating profit as the major costs of the transformation have now passed. This will be a particular feature of our H1 results," Finlay commented.
In the medium term, Finlay sees the opportunity for Debenhams to become a multi-billion pound GMV business with GBP100 million plus Ebitda.
"In Young Fashion, returning to growth, strengthening the proposition and continuing to improve the profitability mean that they can become material contributors to group profitability again. Karen Millen has significant value," he added.
By Jeremy Cutler, Alliance News reporter
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