What: Debenhams Group increased EBITDA despite declining GMV, with Debenhams outperforming and PrettyLittleThing under review for sale.

Why it is important: The group’s transformation highlights the value of marketplace models and targeted cost reductions in achieving sustainable growth.

Debenhams Group’s latest annual results reveal a company in the midst of significant transformation, with adjusted EBITDA rising 3% to £41.6 million despite a decline in gross merchandise value. The standout performance of the Debenhams brand, which saw a 34% increase in GMV to £654 million, contrasts sharply with the underperformance of PrettyLittleThing, now under strategic review for a potential sale. CEO Dan Finley’s leadership since November has focused on stabilizing the business, implementing aggressive cost-saving measures, and repositioning the group’s youth brands. The group’s shift to a capital-lite, stock-lite, and cost-lite marketplace model has been central to its turnaround, enabling substantial reductions in stock holding and capital expenditure. While total revenue and margins declined, the group’s operational efficiency and brand focus have begun to yield results, narrowing losses and improving profitability. This multi-year strategy aims to leverage Debenhams’ digital-first success as a blueprint for the wider group, reflecting a broader industry trend of adapting business models to evolving consumer preferences and market challenges.

IADS Notes:

Debenhams Group’s transformation, initiated with its rebranding from Boohoo in March 2025, has been anchored by the success of its marketplace model and decisive operational changes. By December 2024, Debenhams had achieved a 65% increase in GMV and doubled EBITDA, validating the digital-first approach. These results, set against the backdrop of broader revenue declines for the group, underscore the importance of focusing on high-performing brands and operational efficiency, as also seen in the repositioning of youth brands and the adoption of marketplace strategies by leading retailers in late 2024.

Debenhams Group results show EBITDA up