UK's Boohoo group posts $1.06 bn revenue in FY25, Debenhams rises 34%

The gross profit of the company fell 13 per cent to £415.8 million (~$557.2 million), while adjusted EBITDA edged up 3 per cent to £41.6 million (~$55.7 million), improving margin by 80 basis points (bps) to 5.3 per cent. GMV (pre-returns) fell 2 per cent to £1.61 billion.

The Debenhams brand stood out with gross merchandise value (GMV) growth of 34 per cent to £654 million (~$876.4 million), while Youth Brands recorded GMV of £795.6 million, down 19 per cent YoY, and Karen Millen reported GMV of £157.1 million, down 3 per cent.

The group’s inventory was reduced by 65 per cent to £72.2 million, and capital expenditure (capex) was cut by 58 per cent to £27.5 million. Net debt fell to £78.2 million from £95 million in fiscal 2024 (FY24), following a £39 million equity raise, non-core asset disposals, and early loan repayment, Boohoo group said in a press release.

“I took on this role on November 1, 2024. The board recognised the need for change following a long period of sustained and unacceptable underperformance. My immediate focus has been on stabilising the business and positioning it to take advantage of the significant opportunities ahead. I am laser focused on maximising value for all shareholders,” said Dan Finley, CEO of Boohoo Group.

“The highlight of the year has been the standout performance of the Debenhams brand, growing GMV to £654 million (+34 per cent YOY) and with adjusted EBITDA of £25 million (+£14 million YOY),” added Finley. “The Debenhams capital-lite, stock-lite, cost-lite, cash-generative marketplace model sits at the heart of our new strategy. The multi-year turnaround of Debenhams is the blueprint for the turnaround of the wider group.”

Boohoo reduced borrowings by £200 million, completing a new £175 million three-year facility in August 2025 to strengthen financial flexibility. The group is reviewing long-term options for its US and Burnley distribution centres and is exploring a potential sale of Pretty Little Thing (PLT), added the release.

For the first half of FY26, the group anticipates continued strong and profitable growth from the Debenhams brand. All brands are now trading profitably on an adjusted EBITDA basis, with Youth Brands being right sized to prioritise cash generation and profitability.

Adjusted EBITDA for continuing operations is expected to surpass H1 FY25. The group sees substantial medium-term opportunities and remains committed to progressing under new leadership, with a refreshed strategy and clear direction.

“I strongly believe in the medium-term opportunity for our group. We continue forward as Debenhams Group under new leadership, a new strategy, and a new direction,” said Finley.

ALCHEMPro News Desk (SG)