The CEO of Boohoo Group Plc has revealed that it is looking to offload youth brand PrettyLittleThing as the firm finally published its annual results.
Last year boohoo – which serves millions of customers across its Debenhams, Karen Millen, boohoo, MAN and PLT brands – published its results for the 12 months to February 29th, 2024, on May 8th – sparking wild speculation as to the reasons for the apparent delay. Analysts had become nervous by the growing uncertainty over the group’s apparent lack of financial visibility.
It had until the end of this month to publish the results and chose to do so this afternoon.
The listed retail giant reported a 12% drop in revenues for FY25 – from £902.3m to £790.3m – while gross profit fell from £479.3m to £415.8m.
Operating costs for the year ended 28th February 2025 dropped 15% to £375.5m, while adjusted EBITDA climbed 3% to £41.6m. Adjusted loss after tax narrowed by 12% to £43.4m
Boohoo Group plc said its inventory decreased by £135.8m to £72.2m, reflecting its strategy of moving towards a stock-lite, capital-lite operating model – an effective repositioning as an online department store under the Debenhams rebrand.
In a bullish statement, it said this largely reflects the growing importance of the marketplace model where commission income, rather than full transaction value, is recognised.
Net debt at year end was £78.2m, down from £95m at the end of FY24.
“We have reduced our cost base by delivering £50m in annualised savings, including a 30% headcount reduction, as we operate more efficiently across the group,” it stated in a notice to the London Stock Exchange. “We also halved stock to c.£72m by year-end, with 90% of stock now less than six months old.”
Dan Finley was named group CEO at the start of November 2024. “The board recognised the need for change following a long period of sustained and unacceptable underperformance,” he said today.
“My immediate focus has been on stabilising the business and positioning it to take advantage of the significant opportunities ahead.
“We have significantly reduced the capital intensity of the business. We have faced into legacy stock issues and reduced our stock holding by more than 50%. We have stopped unnecessary capital expenditure and reduced capex by more than 50%. Further reductions will be delivered this financial year.
“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.”
Boohoo bought PLT from Umar Kamani, son of boohoo founder Mahmud Kamani, for £328m in 2020.
“As part of our ongoing business review, we are exploring a potential sale of PLT,” said Finley.
“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 Thursday Boohoo Group Plc announced a £175m refinancing deal, leading to a sharp rise in its share price. It subsequently dropped again, though it remains ahead of its value last Wednesday.
However the terms of the fast fashion retailer’s deal have raised a few eyebrows – especially as it is a household name.
The listed firm extended its financing facility amid speculation over a delay in publishing its full-year results. The three-year facility gives it access to funding of up to £175m and extends to August 2028, replacing its previous £125m revolving credit facility, which was originally due to mature in October 2026.
The new facility is provided by a number of financing parties, led by TPG Angelo Gordon. The interest rate has increased to the Bank of England base rate plus 7.3%.
Gareth Smythe (below), CEO at M&A specialist Hilton Smythe, pulled no punches in his analysis of the deal – and said that it makes the group a sitting target for a takeover.
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