Debenhams Group Raises Guidance as Shares Jump on Strong Trading Momentum

Debenhams Group (LON: DEBS) (formerly Boohoo) shares rallied more than 7% on Wednesday morning after the online retailer revealed it is trading ahead of expectations for the financial year to 28 February 2026, prompting an upgrade to full-year guidance.

The stock is now up more than 10% since the start of the year and has surged around 104% in the last 3 months.

The company said Adjusted EBITDA for total operations is now expected to reach £50 million, an increase from prior guidance of about £45 million issued in late November. The uplift reflects what the group described as continued momentum across the business, with all brands trading profitably.

Management highlighted a “discernible improvement” in Youth Brands and ongoing success in the turnaround of PrettyLittleThing (PLT).

The board had previously classified PLT as an asset held for sale, but the brand’s stronger performance and improving profitability have prompted a strategic shift. PLT will now be retained and reported within continuing operations, with the company citing “substantial opportunity ahead as a fashion-led marketplace.”

Debenhams also said it is exploring sizeable licensing opportunities while progressing the sale of non-core assets, a move it expects to materially reduce net debt over the next 12 months.

The group added that its transformation plan is delivering accelerated progress and contributing to the stronger outlook. Debenhams will provide a further update to the market in March 2026.

The upgraded earnings forecast and confirmation of PLT’s retention helped lift market sentiment, with investors welcoming signs that the turnaround story is gaining traction.