British department store Debenhams has posted significantly increased annual profits despite lower sales, which declined over 50%.
The online retailer celebrated a profit after tax of £3.27 million for the year ending 29 February, up from a £721,000 loss the previous year.
However, sales were down from £87.1 million to £39.73 million, while gross merchandise value (GMV) rose 65% to £359.69 million.
A mainstay of the UK high street since 1778, Debenhams first filed for administration in 2019 and was bought by Boohoo Group in 2021 for £55 million, later relaunching as an online-only retailer.
Dan Finley, CEO of Debenhams and parent company Boohoo Group, said: “The company has been transformed into a fast growing and profitable business, with a capital light and highly cash generative model with significant brand awareness in the UK.”
Finley described its marketplace model as “stock-light, capital-light and highly profitable, as these results show”.
He added that the current year had started “strongly” and said there was “lots of opportunity ahead”, with a focus on increasing value for shareholders.
“We want Debenhams to be a customer destination of choice, offering a great selection of brands across fashion, home and beauty and in a curated and personalised way,” said Finley.
“We bought [Debenhams] out of administration and are making great progress transforming it into Britain’s online department store.”
Debenhams broke Black Friday records last week, as the only apparel retailer to trend on Google’s search engine for 17 consecutive hours during the day.
Finley said: “We are thrilled to see Debenhams resonate so strongly with consumers this Black Friday.
“Our commitment to providing exceptional quality and service has resulted in a great online shopping weekend, and we are excited to continue delivering value to our customers over the festive season.”
