# Turnaround plan drives Debenhams back to growth

By Russ Mould — 2026-06-03

Russ Mould, investment director at AJ Bell, said: “It has been a long hard slog for Boohoo’s owner Debenhams Group as it has sought to recover from its post-pandemic malaise, but the latest update suggests recovery efforts are beginning to bear fruit.

“That progress been achieved against a difficult consumer backdrop is a feather in the cap for management. A return to meaningful sales growth gave investors plenty of cause for optimism.

“The Debenhams and PrettyLittleThing websites demonstrated strength and there were operational improvements across Boohoo, BoohooMan and Karen Millen.

“A drop in customer return rates helped to boost margins alongside a significant slashing of costs. This has put Debenhams on the path to sustainable free cash flow.

“The turnaround has also been supported by a shift from purely being a traditional fast fashion manufacturer to a model of carrying third-party products on which Debenhams earns a commission but leaves the logistics and costs of delivery to the supplier.

“Chief executive Dan Finley struck a confident tone as he stuck with full-year guidance and flagged an expected improvement in the group’s balance sheet supported by the planned sale of facilities in Burnley and the US.”

Canonical: https://experts.pressassociation.com/expert/6/views/7ee2312ae47b039e