Debenhams Group, the owner of Boohoo and Debenhams, has raised its annual earnings forecast and abandoned plans to sell the PrettyLittleThing brand, citing successful turnaround efforts.
The company now expects underlying earnings of £50 million for the year to February 28, up from previous guidance of around £45 million and higher than the £41.6 million reported in 2024-25. It attributed the improvement to continued momentum in the Debenhams brand, better performance in its youth brands, and accelerated progress on its transformation plan.
Debenhams Group said it was “particularly pleased” with the revival plan at PrettyLittleThing and its improvement in profitability. “Given the success we are seeing with the turnaround, the momentum it is building and the substantial opportunity ahead as a fashion-led marketplace, the brand will be retained,” it said. However, it will continue to explore the sale of other non-core parts of the business to reduce debt over the coming year.
Chief executive Dan Finley is leading a major turnaround after losses and flagging sales. In August last year, the business had considered selling PrettyLittleThing as part of the overhaul, having already secured around £50 million in annual savings and cut staff headcount by 30%.
The group narrowed its first-half pre-tax loss on continuing operations to £2.5 million for the six months to August 31, from £130 million a year earlier. The improvement was driven by the online Debenhams brand, which saw gross merchandise value and earnings grow. However, group revenues fell by 23% to £296.9 million over the half-year.
