Debenhams Group, formerly known as Boohoo Group, is considering selling PrettyLittleThing after revenues plummeted by £112m, or 12 per cent, to £790.3 million for the year ending February 28, 2025. Gross margin, meanwhile, also decreased slightly, to 52.6%.
The group’s continuing pre-tax loss also widened to £263.9m, compared with £164.4m a year earlier.
Despite the drop in income, the rebranded group reported that adjusted EBITDA was marginally up at £41.6 million for the year, a three per cent increase from the previous year, and shares were slightly up on the results’ release this afternoon (August 26) as the company undergoes a significant transformation under its new new leadership and name.
CEO Dan Finley, who took charge in November 2024, has implemented aggressive cost-cutting measures including £50 million in annualized headcount savings. The company highlighted the performance of its Debenhams brand, which grew GMV by 34% to £654 million and delivered £25 million in adjusted EBITDA.
The group has also reduced its capital intensity, cutting inventory holdings by more than 50% and decreasing capital expenditure by over 50%. Net debt fell to £78.2 million at year-end, down from £143.1 million at the half-year mark and £95 million in FY24.
Earlier this month, the company secured a new three-year finance facility of up to £175 million, replacing its previous facility more than a year ahead of maturity.
The company is exploring a potential sale of PrettyLittleThing (PLT) and assessing options for its US and Burnley distribution sites to align with its “stock-lite” strategy, CEO Finley confirmed.
He said: “The business has been through a very challenging period which is reflected in these results. I want to assure shareholders that the business is taking the necessary actions, quickly and decisively, to address the challenges that we face. No stone will be left unturned.
…We are focused on delivering on the huge opportunity ahead for the Debenhams brand. Work is progressing to reposition and right size the Youth Brands, with a laser focus on profitability and cash generation under new management.
This will be a multi-year turnaround as was the case with the Debenhams brand. As part of our ongoing business review, we are exploring a potential sale of PLT. We are also assessing long-term options for our US and Burnley distribution sites to enhance efficiency and ensure alignment with our stock-lite strategy.”
The company, which has also been involved in a long-running boardroom battle with majority shareholder Mike Ashley, said it expects first-half FY26 adjusted EBITDA for continuing operations to be ahead of the same period in FY25.
