Boohoo Group (AIM:DEBS), the online fashion retailer now trading as Debenhams Group, said its turnaround "continues at pace" ahead of its AGM, having raised guidance twice in nine months.
Chief executive Dan Finley said gross merchandise value (GMV) is growing year on year, margins are improving and returns are falling, with the Debenhams brand benefiting from recent hot weather and the group's asset-light platform model.
"Our platform model and diversified product assortment enables us to pivot quickly and capitalise on consumer demand," Finley said.
PrettyLittleThing, part of the group's Young Fashion division, has returned to growth and profitability, while Karen Millen remains a "quality brand with significant global potential", according to Finley.
The group expects net debt to be materially lower this year, helped by sales of remaining non-core property assets, and is targeting a ratio below 1x adjusted EBITDA by the year ending February 2027.
Finley said strategic brand licensing and potential disposals could eliminate the debt entirely.
He added that investors should expect improved conversion of adjusted EBITDA into reported EBITDA and operating profit this year, as the major costs of the transformation phase have now passed.
The group will update on first-half performance in September.
