“Debenhams is back,” proclaimed the online retailing group formerly known as Boohoo. Unfortunately, its fast-fashion brands – not just Boohoo itself but also Pretty Little Thing and MAN – haven’t gone away. All are struggling badly.
Since the latter collection still represents three-quarters of group revenues, new chief executive Dan Finley’s upbeat talk about an exciting future feels more than a little premature. The main market-moving news in the strategy rejig and trading update was another downgrade to the City’s profit expectations alongside a thumping £40m charge for writing down surplus stock at what are now badged as the “youth brands”. The shares fell 4%.
