Debenhams transformation ‘underway’ as fortunes start to look up
Debenhams has announced an improvement in trading after a long period of decline fuelled by a restructuring of its business model.
The company, which rebranded from Boohoo Group earlier this year, reported earnings before interest, tax, depreciation and amortization (EBITDA) of £41.6m in 2025.
The standout performer was the Debenhams brand, which grew sales by 34 per cent year on year to £654m and delivered adjusted EBITDA of £25m, a £14m improvement from the previous year.
Dan Finley, who was promoted to chief executive at the end of last year, said “aggressive” actions made the improvement possible.
“The business has been through a very challenging period. I want to assure shareholders that [it] is taking the necessary actions… to address the challenges that we face.”
“No stone will be left unturned,” he said.
The company is intent on creating a stock light, capital light marketplace across all areas of the group to “deliver a sustainable growth model”.
It will also explore a potential sale of PrettyLittleThing (PLT) as part of its restructuring efforts.
Net debt at the year-end was £78.2m, down from £95m at the end of last year, while distribution costs fell by 46 per cent year on year.
Capital expenditure fell from £64.8m last year on £27.5m, following a “more disciplined” approach to investments, the company said.
‘Huge opportunity’ for Debenhams
The then-Boohoo Group acquired Debenhams out of administration in 2022, later repositioning it as Britain’s online department store underpinned by a new marketplace led business model.
The company then rebranded as Debenhams in March this year, arguing that it had a “clear runway” to multi-billion-pound sales.
“We are focused on delivering the huge opportunity ahead for the Debenhams brand,” Finley said.
“Our mission is to become the shopping destination of choice by connecting our community with the brands they love,” he added.
Panmure Liberum analysts Wayne Brown and Anubhav Molhotra said it was “rare on the public markets that such decisive actions are taken but there is a plan and the funding to execute this plan.”
“[The financial year] has gotten off to a solid start,” analysts said.