Debenhams Group hikes earnings outlook and decides to keep PrettyLittleThing

UK-based online platform Debenhams has announced it is trading ahead of initial expectations for the financial year ending February 28, 2026. The group now expects full year adjusted EBITDA for total operations to reach 50 million pounds (69 million dollars).

Strategic shift for PrettyLittleThing

In a significant policy reversal, the board of directors has decided to retain the youth-focused brand PrettyLittleThing. The label, which had previously been classified as an asset for sale, will now be reported within the continuing operations of the company.

Management attributed this decision to the “pace and scale” of the turnaround of the brand and its transition toward a fashion-led marketplace. All brands within the portfolio of the group currently remain profitable, with notable improvements cited across its youth-focused divisions.

Portfolio transformation and debt reduction

The group is continuing to execute a wider transformation plan aimed at streamlining operations and strengthening its balance sheet. Key initiatives include exploring licensing opportunities to leverage its brand equity, sale of non-core assets to focus on its primary digital platforms, which are expected to materially reduce the net debt of the group over the next 12 months.

The London-listed company noted that the updated earnings guidance reflects continued momentum for the core Debenhams brand and accelerated progress on its strategic restructuring. The group intends to provide a further update to the market in March 2026.