As Debenhams revealed its earnings had bounced back into profit for the past six months, Russ Mould, AJ Bell investment director, believes this will inspire greater confidence in the online retail group.
He said: “Investors were relatively unmoved despite Debenhams Group (formerly Boohoo) announcing first-half trading which offered further confirmation that its turnaround is gaining traction.
“After some decent gains in recent months, the market will be keen to see further evidence it is delivering on the recovery plan.
“Several key brands returned to growth and the core Debenhams brand is also performing robustly despite a backdrop which is about as gloomy as a wet day in late November.
“Critically the company has made real progress with its balance sheet, partly thanks to disposals and as it focuses more heavily on cash generation. This will inspire greater confidence in the group’s ability to see its way through what looks set to be a testing period.”
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