Debenhams Group, formerly Boohoo Group, has posted its results for Y/E February 28, 2025.
Total group sales came in at £2.3bn, a ten per cent drop on the prior year, with its young market brands’ contribution plummeting by 22 per cent to £1.5bn. Meanwhile, Debenhams’ revenues amounted to £654m, an increase of 34 per cent, but insufficient to seriously dent the group loss of £263.3m, which was up from the £146.4m loss in the previous year.
Price-slashing Shein and Temu are blamed for the fall in young market demand, and will see the business put its Pretty Little Thing (PLT) brand – acquired from the son of Boohoo founder Mahmud Kamani in 2016 – up for sale. In addition, the business is also considering the closure of distribution centres in Burnley and in the US.
In a statement, CEO Dan Finley said: “I took on this role on 1st November 2024. The Board recognised the need for change following a long period of sustained and unacceptable underperformance. My immediate focus has been on stabilising the business and positioning it to take advantage of the significant opportunities ahead. I am laser-focused on maximising value for all shareholders.
“We have significantly reduced the capital intensity of the business. We have faced into legacy stock issues and reduced our stock holding by more than 50 per cent. We have stopped unnecessary capital expenditure and reduced capex by more than 50 per cent. Further reductions will be delivered this financial year.”
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