Debenhams has stated that it has recorded a continuation in "positive trading", adding that its multi-year turnaround is moving "at pace".

Ahead of the company’s AGM, the online fashion retailer’s CEO, Dan Finley, said he was pleased with the firm’s trading through June and July, with gross merchandise value (GMV) continuing to grow year-on-year.

He also added that margins are up and returns are down, with its platform model and "diversified product assortment" enabling it to pivot quickly and capitalise on customer demand, especially during the recent hot weather.

Debenhams, which previously traded at boohoo group, stated that through continued improved trading and the sale of its remaining non-core property assets, it expects its net debt to be materially lower in the current year, with strategic licensing opportunities and potential business disposals providing an opportunity to eliminate this debt.

It added that over the course of the year, investors should expect to see better conversion of adjusted earnings to reported earnings, and to operating profit as the major costs of the transformation have now passed, with a reflection in its H1 results.

Finley stated that in the medium term, he expects to see the opportunity for the Debenhams brand to become a "multi-billion GMV business with £100m+ EBITDA".

Following the statement, shares in Debenhams increased by over 4%.

Head of markets at AJ Bell, Dan Coatsworth, said the retailer has been "basking in the sunshine" with its turnaround efforts sustaining momentum.

He concluded: "The decent weather should have driven sales as people dress to impress as they get out and about. Positive trading, higher margins, lower returns and more manageable borrowings are the kind of ingredients that make investors happy.

"It’s fair to say that Debenhams has reached an inflection point where the business is now in a much better shape. The story switches from turnaround to growth, and the early signs are encouraging."

Debenhams will update on its H1 performance in September.

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