In the middle of a ongoing, company -wide transformation plan, which is largely based on the transition to a marketplace model, the Debenhams Group – formerly Boohoo Group – recorded a minor performance improvement for the entire year until February 28, 2025.
The company reported a result that was adjusted for special effects before interest, taxes and depreciation (EBITDA) of £ 41.6 million (48 million euros) with an improved margin of 5.3 percent. This is due to lower sales costs after warehouses and further cost reductions. The investment expenditure was reduced to £ 27.5 million.
The adjusted loss before tax decreased from £ 49.2 million in 2023 to £ 43.4 million. The loss of £ 146.4 million in an unavailable basis rose to £ 263.3 million. Debenhams stated that one-off expenses were incurred due to initiatives such as the closure of the US sales center and extraordinary warehouse depreciation. Nevertheless, group sales fell by twelve percent from 902.3 million British pound to £ 790.3 million. The decline reflects “the growing importance of a marketplace model, in which commission income is recorded instead of the entire transaction value,” said Debenhams.
Transition to the marketplace model strengthens performance
As part of its more comprehensive transformation, the group began to align its portfolio on a “capitals -easy, low -level marketplace model” in the course of 2024. He reacted to the increasing demand from consumers: inside for more comfortable online shops.
The effects of this transition were shown in the financial performance in the course of the year. During the Group’s gross rare value (GMV) compared to the previous year, two percent decreased, the Debenham brand, which has been using the marketplace model successfully for a long time, recorded a stronger performance. The GMV rose by 34 percent to 645 million British pounds. The company’s marketplace almost doubled its contribution compared to the previous year and made up almost 30 percent of the total GMV.
In the course of the 2025 financial year, Debenhams plans to further expand this structure in its entire company. Brands such as Karen Millen should soon also offer used luxury items and thus diversify their product range. “There are also opportunities for international expansion that remain a strategic priority,” said Debenhams.
PrettyLittlething may be on the test bench
While the ‘youth brands’ of Debenhams continues to have a high level of relevance for their target group, Prettyylittlething (PLT) is the focus of discussions about a sale. In the group report, Debenhams stated that it was actively sought to sell the online retailer. The board sees “an opportunity to accelerate progress and maximize the shareholder value”.
PLT has slightly affected the performance in the youth brand category, the report said. The GMV, including the brand, dropped 22 percent to £ 1.5 billion compared to the previous year. Without the retailer, however, the GMV fell by 19 percent to £ 759.6 million.
In view of the weaker performance of this division, Debenhams plans to realign his youth brands under a new leadership “with a strong focus on profitability and cash generation”. What form this strategy will accept is not yet known.
Trade in the 2026 financial year is positive, while options for business areas are examined
In order to alleviate the effects on other business areas, the company is examining long -term options for its sales locations in the United States and in the English Burnley. This should further optimize the inventory strategy.
The trend reversal is led by Dan Finley, who was appointed Group’s CEO in November 2024. In a statement, Finley admitted that the results reflect a challenging period. However, he emphasized that the “company takes the necessary measures quickly and determined to cope with the challenges with which we are confronted”.
The performance in the first half of the 2026 financial year showed a continued strong and profitable growth of the Debenham brand. All other brands are now also profitable in adjusted EBITDA. It is therefore expected that these figures are higher in the first half of 2025.
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