A surprise turnaround at previously doomed-looking youth fashion brand PrettyLittleThing (PLT) has led to something of an economic revival at Manchester’s Debenhams Group (formerly boohoo), which has has upped its annual earnings outlook after trading outstripped expectations.
The online retail business, which rebranded from its longstanding boohoo moniker despite objections from majority shareholder and frequent causer of boardroom bedlam Frasers Group, hailed the performance of its youth brands, and PrettyLittleThing (PLT) in particular, in the update.
The brand, which the parent had previously considered putting up for sale after revenues plummeted by £112m, or 12 per cent, to £790.3 million for the year ending February 28, 2025, is now set to be retained having earned a stay of execution, the group assured investors in the update.
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The retail giant reported it was trading above expectations for the year to 28 February 2026. It also noted that its full year adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for total operations was now expected to come in at £50m, up from its previous guidance of £45m in November.
Debenhams said that this was a result of “the continued momentum in our Debenhams brand, a discernible improvement in the performance of our youth brands and accelerated progress on our transformation plan.”
The group said that all of its brands continued to trade profitably, and that it was “particularly pleased” with the pace and scale of PrettyLittleThing’s (PLT’s) turnaround and its resulting “material improvement in profitability.”
The group is home to Debenhams, the online department store, and the fashion-led marketplaces, boohoo, PLT, MAN, and Karen Millen.
Debenhams was probably due some good news after a couple of years marred by boardroom battles, bad publicity and sliding profits.
Last August it secured a new three-year finance facility of up to £175 million, replacing its previous facility more than a year ahead of maturity and began trimming its distribution sites to align with its new “stock-lite” strategy.
CEO Dan Finley said at the time: “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.”
