Online fashion giant Debenhams Group, which encompasses household name brands including Boohoo and Pretty Little Thing, has hailed a “year of significant and successful transformation” as it narrowed losses despite a further fall in sales.
“The turnaround is firmly on track” at the once-struggling Manchester-HQd group, declared group chief executive Dan Finley this morning (June 16), reporting annual results for the year to February 28, 2026.
The company reported a £108.3m pre-tax loss for the year to 28 February, reducing from £326.4m a year earlier.
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Meanwhile, group revenues slid by almost a quarter, 24.7 per cent, to £917m for the year, partly linked to the group’s shift to a higher-margin marketplace model.
Finley said: “This has been a year of significant and successful transformation for Debenhams Group.
“Since my appointment as group chief executive in November 2024, I have been sharply focused on executing our multi-year turnaround strategy – and the progress is clear. We delivered £53.3m of Adjusted EBITDA, up 35 per cent year-on-year following two trading upgrades and turned every brand profitable on the same basis.
“The rebrand to Debenhams Group in March 2025 marked the defining moment. Our capital-lite, stock-lite, cost-lite, cash-generative marketplace model has now been rolled out across the entire group. FY26 has been a year of decisive action. The cost base has been reset, warehouse consolidation completed, the tech re-platform delivered, stock rightsized, and onerous costs exited.
“Our Debenhams brand continues to grow at pace, scaled to £730m GMV (FY25: £654m) and £34.8m Adjusted EBITDA (FY25: £25m), up 38.5 per cent. On an Adjusted EBITDA level, we have turned around PrettyLittleThing from a £1m loss in FY25 to a £14m profit in FY26 and all of our brands are now profitable at an Adjusted EBITDA level.
“We consolidated all warehouse operations into Sheffield, delivering £33m of recurring savings, unified three technology platforms into a single AI-powered stack saving £38m annually, renegotiated over 150 contracts for £35m in savings, refinanced the group and raised £40m through an oversubscribed equity raise, and reduced statutory losses after tax by £218m year-on-year.”
He added: “Our focus now shifts to growth, and the turnaround continues at pace, with momentum in our multi-year strategy accelerating since year end.
“I am pleased to report that the company has returned to growth in FY27, with Q1 Group GMV up 0.5 per cent year-on-year and May 2026 trading particularly strong at approximately 8 per cent GMV growth – a significant inflection point, with trading in June continuing to be strong.
“Under new leadership and a new strategy, the business is well positioned for significant future growth, with the successful Debenhams turnaround providing the blueprint for the wider group.”
