Debenhams has returned to profitability for the six months ending August 31, reporting earnings before interest, tax, depreciation, and amortisation (EBITDA) of £20 million. This marks a significant turnaround from a £3 million loss in the same period last year. The company, which also owns the Boohoo and Pretty Little Thing brands, saw its gross merchandise value (GMV)—a measure of total sales—rise by 1.8% year-on-year. Growth in GMV accelerated from 0.5% in the first quarter to 2.9% in the most recent quarter, reflecting an improving performance across its portfolio. The Debenhams brand itself experienced a notable 14.1% increase in sales, while other owned brands like Pretty Little Thing, Boohoo, and Karen Millen also returned to growth. This improvement was largely due to a sharp reduction in exceptional costs—unusual or one-time expenses—which fell by 83.5% to £4 million. The company has also made strategic moves to streamline its operations, including the sale of the women’s fashion brand Nasty Gal for $16 million (£11.9 million) to WSG brands, and the sale of its Sheffield warehouse for £90 million to Primark. Debenhams is now focused on reducing its net debt from £102 million to "negligible" levels and achieving £100 million in cost savings by next year. These efforts are part of a broader strategy to strengthen its financial position and improve long-term sustainability. The company's Chief Executive, Dan Finley, expressed confidence in the future, stating that Debenhams is on track to achieve double-digit adjusted EBITDA growth and positive free cash flow by the end of 2027. This outlook reflects the progress made so far and the potential for continued improvement in the coming years.