Debenhams Group saw pre-tax losses widen in its annual results, as it considers a sale of PrettyLittleThing (PLT).
Pre-tax losses grew to £264m for the year ended 28 February 2025, compared to £164m the same time last year.
Sales were down 10% to £2.3bn, with its “youth brands” Boohoo, PrettyLittleThing and BoohooMan suffering the biggest decline with revenues dropping by more than a fifth to £1.5bn.
The Debenhams arm, which comprises Warehouse, Oasis, Dorothy Perkins and an online marketplace, saw revenues rise to £654m. However, sales at Karen Millen were down 3%.
The group is mulling the sale of PrettyLittleThing, and is also considering closing its distribution centre in Burnley, potentially leading to the loss of 1,251 roles.
Debenhams Group, formerly Boohoo Group, purchased a majority stake in PrettyLittleThing in 2016 for £3.3m. In 2020, it went on to buy the remaining stake for over £260m.
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The group’s CEO Dan Finley said: “The business has been through a very challenging period which is reflected in these results. I want to assure shareholders that the business is taking the necessary actions, quickly and decisively, to address the challenges that we face. No stone will be left unturned.
“As outlined in March, we have a clear plan as Debenhams Group to transform the business and a route map to generating sustainable profit growth. Our mission is to become the shopping destination of choice by connecting our community with the brands they love.”
He continued: “We are focused on delivering on the huge opportunity ahead for the Debenhams brand. Work is progressing to reposition and right size the youth brands, with a laser focus on profitability and cash generation under new management.
“This will be a multi-year turnaround as was the case with the Debenhams brand. As part of our ongoing business review, we are exploring a potential sale of PLT. We are also assessing long-term options for our US and Burnley distribution sites to enhance efficiency and ensure alignment with our stock-lite strategy.”
Last week, Debenhams Group secured a new three-year facility providing access to funding of up to £175m from its former owner TPG.
The retail giant said the refinancing provided “significantly enhanced financial flexibility, enabling it to deliver its new multi-year turnaround strategy”.
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