Online fashion retailer Debenhams Group has described a "year of significant and successful transformation" as it narrowed its losses despite a continued drop in sales.
The company, which also owns Boohoo and Pretty Little Thing, stated that its major turnaround programme is progressing "at pace". Chief executive Dan Finley confirmed the turnaround is "on track" following substantial cost reductions, the closure of one warehouse, and enhancements to its technology platform.
For the year ending February 28, Debenhams reported a pre-tax loss of £108.3 million, a significant improvement from the £326.4 million loss recorded the previous year. The reduction was largely attributed to a sharp decrease in exceptional costs during the period.
Pretty Little Thing returned to profitability over the year, after the group suspended a potential sale process for the brand earlier in 2024. However, group revenues fell by nearly a quarter (24.7%) to £917 million, partly due to the shift towards a higher-margin marketplace model.
Gross merchandise value (GMV) before returns, the group's preferred sales metric, declined by 21.6% to £1.82 billion compared to the previous year. The drop was driven by the youth brands division, including Pretty Little Thing and Boohoo, which saw a 35.8% slump in GMV.
In contrast, the Debenhams brand itself continued to grow, with GMV increasing by 11.6% to £730 million. The group reported a return to growth in the first quarter of the new financial year, with GMV up 0.5% in the three months to May, including 8% growth in May alone. Trading in June has been described as "strong" so far.
Debenhams confirmed it is on track to achieve £100 million in cost savings by 2027 as it continues its efforts to return to profitability. Mr Finley added: "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."
