Debenhams Group reported widening pre-tax losses in its latest annual results as it weighs the possible sale of PrettyLittleThing (PLT).
For the year ended 28th February 2025, pre-tax losses rose to US $ 340 million compared with US $ 212 million a year earlier. Group sales fell 10% to US $ 2.97 billion, with revenues at its youth brands — Boohoo, PrettyLittleThing and BoohooMan — declining by more than a fifth to US $ 1.94 billion.
By contrast, the Debenhams arm, which includes Warehouse, Oasis, Dorothy Perkins and an online marketplace, saw revenues increase to US $ 844 million. Sales at Karen Millen, however, slipped by 3%.
The group confirmed it is exploring the potential sale of PrettyLittleThing and is also considering closing its distribution centre in Burnley, which could lead to the loss of 1,251 jobs.
Debenhams Group, formerly known as Boohoo Group, first acquired a majority stake in PrettyLittleThing in 2016 for US $ 4.26 million and bought the remaining stake in 2020 for more than US $ 335 million.
Chief Executive Dan Finley acknowledged that the results reflected a difficult period, noting that the company was taking “necessary actions, quickly and decisively, to address the challenges”. He stressed that no option was being ruled out in the process.
He reiterated that the business had set out a clear plan to transform the group and return to sustainable profit growth, with the aim of becoming the “shopping destination of choice” by connecting consumers with preferred brands.
Finley added that there was a significant opportunity ahead for the Debenhams brand and confirmed that work was underway to reposition and streamline the youth brands under new management, focusing on profitability and cash generation. He emphasised that this would be a multi-year turnaround similar to that undertaken with the Debenhams brand.
As part of its ongoing review, the group is examining a potential sale of PrettyLittleThing and assessing long-term options for its US and Burnley distribution sites to improve efficiency in line with its stock-lite strategy.
Last week, Debenhams Group secured a new three-year funding facility of up to US $ 226 million from its former owner TPG. The company said the refinancing offered “significantly enhanced financial flexibility” to support its multi-year turnaround plan.
