Debenhams Group reduces losses as PrettyLittleThing returns to profit

The company reported a £108.3 million pre-tax loss for the year to February 28, reducing from £326.4 million a year earlier, with its PrettyLittleThing brand returning to profit over the year.

Debenhams Group has hailed a “year of significant and successful transformation” as it narrowed losses despite a further fall in sales.

The retail Group, which also owns Boohoo and PrettyLittleThing, said its major turnaround programme has continued “at pace”.

Debenhams' CEO Dan Finley said the turnaround is “on track” after significant cost cutting, the closure of one of its warehouses and improvements to its tech platform.

The company reported a £108.3 million pre-tax loss for the year to February 28, reducing from £326.4 million a year earlier.

It was linked to a sharp reduction in exceptional costs during the year.

The Group delivered £53.3 million of Adjusted EBITDA, a 35% increase year on year, following two trading upgrades and every one of its brands turning profitable on the same basis.

This included the Pretty Little Thing brand, which returned to profit over the year, with the Group having halted a potential sale process for the brand earlier this year.

Meanwhile, Group revenues slid by almost a quarter, 24.7%, to £917 million for the year, partly linked to the Group’s shift to a higher-margin marketplace model.

Gross merchandise value (GMV) before returns, the Group’s preferred sales measure, was down 21.6% at £1.82 billion for the year, compared with a year earlier.

Decline was driven by the Group’s youth brands operation, which includes PrettyLittleThing and Boohoo, reporting a 35.8% slump in GMV.

But its Debenhams brand continued to drive growth, with GMV up 11.6% to £730 million for the year.

The Group said it returned to growth in the first quarter of the new financial year, with GMV up 0.5% over the three months to May, including 8% growth in May.

Debenhams said it has seen further “strong” trading in June so far.

The Group said it is on track to have delivered £100 million worth of cost savings over the period to 2027 as it continues with efforts to return to profit.

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.

"Our focus now shifts to growth, and the turnaround continues at pace, with momentum in our multi-year strategy accelerating since year end."

Earlier this month Debenhams had announced that had seen record growth across its Boohoo, BoohooMAN and Karen Millen brands in the first quarter ended 31 May 2026.

Debenhams Group continued turnaround has also seen it expand its senior leadership team. In May the Group promoted Chief Commercial Officer Richard Vanoli to the role of Managing Director of Debenhams to lead the “next stage of growth”.

The Group also recently struck a deal with Revolution Beauty to launch beauty and fragrance products, having “completely reset” the relationship years after a well-publicised boardroom spat.