Debenhams Group transformation "firmly on track"

Debenhams Group, the British retail group formerly known as Boohoo Group, has announced that the year to February 28, 2026, was “a year of significant and successful transformation” for all its brands, but especially PrettyLittleThing, which returned to profit.

In its audited results, Debenhams posted adjusted EBITDA of 53.3 million pounds for the year, up 35 percent year-on-year, adding that every brand it owns, Boohoo, BoohooMan, PrettyLittleThing, Karen Millen and Debenhams, were profitable at EBITDA level.

Group revenue fell 24.7 percent to 917 million pounds during the year, which the group notes reflects its decision to transition towards the higher-margin marketplace model, while gross merchandise value (GMV) before returns declined 21.6 percent to 1.82 billion pounds year-on-year, due to the business prioritising driving profitable sales, explains the retail group.

While sales dropped, the retail group did narrow its losses, reporting loss before tax dropping by 69.2 percent to 108.6 million pounds, reducing from 326.4 million pounds a year earlier. While operating costs reduced 28.2 percent to 415.4 million pounds, reflecting warehouse consolidation into Sheffield, which saved 33 million pounds, the migration to a single technology platform, saving 38 million pounds annually, and renegotiated over 150 contracts, saving 35 million pounds.

Debenhams Group reports 35 percent increase in earnings as “all brands profitable”

Dan Finley, group chief executive officer of Debenhams Group, describes the turnaround as being “firmly on track,” and continuing at “pace” as FY26 marked the completion of the first year of the group’s multi-year turnaround strategy.

At the heart of the transformation was the major turnaround at PrettyLittleThing, which returned to profitability, from a 1-million-pound loss in FY25 to a 14-million-pound profit in FY26. The group also reported that Debenhams' brand continued to “go from strength to strength,” delivering double-digit growth with GMV up 11.6 percent to 730 million pounds, making it the largest brand in the group.

The group also added that its marketplace model now represents 34.1 percent of total GMV, up from 23.3 percent last year, with marketplace GMV increasing 14.9 percent to 620.4 million pounds, reflecting the group's continued scaling of the capital-lite model.

Looking ahead, Finley states that the group’s focus now “shifts to growth,” adding that Debenhams Group returned to growth in the first quarter of FY27, with GMV up 0.5 percent year-on-year, and May GMV was “trading particularly strong” at 8 percent GMV growth, with trading in June continuing “to be strong”.

Debenhams Group adds that it expects a double-digit improvement in adjusted EBITDA for FY27, and is on track to deliver 100 million pounds worth of cost savings over the period.

Finley added: “This has been a year of significant and successful transformation for Debenhams Group.

“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.”