Debenhams lifts earnings outlook as turnaround gains momentum
The Debenhams Group has upped its annual earnings outlook as turnaround efforts pay off.
The company, which was renamed last year from Boohoo, said it now expects underlying earnings of £50 million for the year to 28 February, up from previous guidance for around £45 million and higher than then £41.6 million reported in 2024-25.
It said: “This is 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.
“All our brands continue to trade profitably.”
The group added it was “particularly pleased” with the revival plan at PrettyLittleThing and its improvement in profitability.
But it said it would continue to look at selling other “non-core” parts of the business to reduce debts over the coming year.
Chief Executive Dan Finley is leading a major turnaround after losses and flagging sales.
In August last year, the business said it was considering the sale of its PrettyLittleThing brand as part of the overhaul, having already secured around £50 million in annual savings and cut its staff headcount by 30% to help transform operations.
The group narrowed losses in its first half, reporting a pre-tax loss on continuing operations of £2.5 million for the six months to 31 August, shrinking from a £130 million loss a year earlier.
It said the improvement in performance has been driven by the online Debenhams brand, which saw gross merchandise value and earnings grow over the half-year.
But group revenues fell by 23% to £296.9 million over the half-year.
"The standout success of the year has been the turnaround of the Debenhams brand under my leadership," said Finley.
"For customers, the Debenhams brand is becoming a go-to shopping destination, a hub of variety, reliability, and ultimate choice. Customers are spending more with us as they can increasingly find all the fashion, beauty, and home products they need, together in one place."
