The group reaffirmed its commitment to investing in its Youth Brands in the short term as part of their turnaround strategy. Meanwhile, the company has raised its medium-term guidance for Debenhams, targeting EBITDA margins of approximately 20 per cent.
Boohoo Group has rebranded as Debenhams Group, marking a strategic shift.
Phil Ellis replaces Stephen Morana as CFO.
The company focuses on turning around Youth Brands while targeting 20 per cent EBITDA margins for Debenhams.
The group’s GMV fell 10 per cent YoY to £2.32 billion (~$2.97 billion) in full fiscal 2025.
Debenhams saw strong growth, with its marketplace model driving expansion.
The medium-term targets for Karen Millen and the Youth Brands remain unchanged, with Karen Millen expected to achieve double-digit EBITDA margins and the Youth Brands projected to reach EBITDA margins of 6 to 8 per cent.
Debenhams segment experienced rapid growth, operating under stock-lite and capital-lite business model. Debenhams is also expanding its role as a key marketplace for partners, offering access to a broad consumer base and supporting sales growth on its platform, Boohoo Group said in a press release.
Implementation of new ESG strategy and business model transition
The marketplace-driven model, proprietary technology, and lean operations of Debenhams will be implemented across the group. This approach is essential for the turnaround of the Youth Brands and will support the growth of Karen Millen, added the release.
Additionally, the group introduced a new environmental, social, and governance (ESG) strategy, which includes partnerships with Segura to enhance supply chain transparency, the carbon trust to develop a net zero transition plan, pennies to facilitate micro-donations for social impact, and the graduate fashion foundation to support emerging fashion talent. The group will now focus on accelerating the adoption of the Debenhams-led business and operating model.
Full year financial report
The group reported gross merchandise value (GMV) pre-returns of £2.32 billion (~$2.97 billion) for the full year to February 2025, a decline of 10 per cent year-on-year (YoY). Post-returns, the group’s GMV stood at £1.64 billion, and revenue reached £1.22 billion, reflecting a 16 per cent decrease YoY.
Segment-wise, Debenhams saw significant growth, with GMV rising to £654.0 million, while Karen Millen recorded £157.1 million. The Youth Brands segment reported £1,510.6 million. In overall revenue, Debenhams contributed £204.6 million, Karen Millen £68.4 million, and Youth Brands £947.3 million.
“Debenhams is back. The iconic British heritage brand, bought out of administration, has been successfully turned around. Rebuilt for the future and transformed into Britain’s leading online department store. We have created a thriving community of brand partners with millions of consumers, and we are growing rapidly. The most exciting thing is that we are just getting started. We see a clear path to scaling this into a multibillion GMV business with strong profitability,” said Dan Finley, Group chief executive officer (CEO). “The successful turnaround of Debenhams is our blueprint for the wider turnaround of the Group. The turnaround of our Youth Brands is underway and will take time. I have inherited significant challenges. I can see their future potential as they evolve into fashion-led marketplaces and adopt a leaner operating model.”
Fibre2Fashion News Desk (SG)
