Boohoo Group PLC (AIM:DEBS), the online retailer operating as Debenhams Group, said trading remained strong into June and July, helping profit margins improve and debt to be further reduced.
Ahead of its annual meeting, the company said gross merchandise value continued to grow year on year, helped by strong trading at the Debenhams marketplace during the recent spell of hot weather.
It said margins had improved while customer returns had fallen.
The update follows two upgrades to guidance in the past nine months, with chief executive Dan Finley saying the group's turnaround was continuing to gather pace.
Finley said the Debenhams marketplace remained the group's strongest growth engine, while PrettyLittleThing had returned to growth and profitability, and Karen Millen retained "significant global potential".
He said net debt should fall "materially" during the current financial year, supported by stronger trading and the sale of its remaining non-core property assets.
The target is to reduce net debt to below one times adjusted EBITDA in the year to February 2027, with business disposals and brand licensing deals potentially eliminating debt altogether.
"Over the course of this year, investors should expect to see much better conversion of Adjusted EBITDA to reported EBITDA and to operating profit as the major costs of the transformation have now passed. This will be a particular feature of our H1 results," Finlay said.
The group will provide a further update when it reports first-half results in September.
