Boohoo owner Debenhams has said the turnaround of its financial performance is gaining momentum as it hailed a return to profit for the first time in five years.
The online retail group reported growth for its Debenhams, Pretty Little Thing and Boohoo brands.
It also has been taking steps to reduce its cost base by selling off parts of the business.
This has included disposing of its Sheffield warehouse in a £90 million deal with rival retailer Primark, and selling the Nasty Gal fashion brand to a US company WSG Brands for 16 million US dollars (£12 million).
This helped reduce the company’s debts and return it to a profit.
Pre-tax profits came in at £28.3 million for the six months to the end of August, swinging from a loss of £17.9 million over the same period last year.
Group chief executive Dan Finley said it marked the “first time the group has delivered positive profit before tax since August 2021”.
Bosses are also targeting a pre-tax profit of more than a £100 million in the “medium term”.
“The turnaround continues at pace,” he said.
“I see material opportunities ahead and we are fully focused on maximising them.”
Gross merchandise value (GMV), the group’s preferred sales measure, increased by 1.8% for the half-year period, compared to last year.
This was led by 14.1% growth for the Debenhams brand, while Pretty Little Thing and Boohoo edged up by 1.1%.
Debenhams is hoping to secure £100 million worth of cost savings by next year.
The company told investors that “additional material cost reductions” were expected in the next financial year.
This article was written by Anna Wise from The Independent and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to legal@industrydive.com.