Debenhams Group has upgraded its outlook for the financial year in its latest trading update, after reporting it is tracking ahead of expectations.

The group said it was performing above expectations for the year to 28 Feb 2026, adding that full-year adjusted EBITDA for total operations is now expected to reach £50million, up from previous guidance of ~£45million issued in November.

Debenhams said the upgrade reflects “the continued momentum in our brand, a discernible improvement in the performance of our youth brands and accelerated progress on our transformation plan.”

The retail group confirmed that all its brands continue to trade profitably, and said it was “particularly pleased” with the pace and scale of PrettyLittleThing’s turnaround, which has delivered a “material improvement in profitability.”

The board had previously held PrettyLittleThing as an asset for sale, but confirmed it will now be retained in light of the progress of its turnaround plans and the scale of the opportunity ahead.

Debenhams Group also said it is exploring significant licensing opportunities and continues to progress the sale of non-core assets, which it said could materially reduce net debt over the next 12months.

In November, Debenhams Group announced it was expanding its Mirakl partnership with the launch of a new retail media platform enabling visibility for its marketplace brands. This addition to the retail group’s technology ecosystem followed several recent initiatives including a partnership with Peak, using AI to manage sales, stock and pricing, as well as a collaboration with Refined Networks to bring Coast, Warehouse, Oasis, Nasty Gal and Karen Millen onto Macy’s, Bloomingdale’s and Nordstrom’s marketplaces.