Debenhams Group has hailed its turnaround after slashing annual losses.
The listed parent company of boohoo, PrettyLittleThing and Karen Millen says its ‘capital-lite, stock-lite’ marketplace model has now been rolled out across the entire group.
Losses before tax for the year ended 28th February 2026 were £108.6 million, down 69.2% from £352.5m in the prior year – reflecting improvement in adjusted EBITDA and a sharp reduction in exceptional costs.
Adjusted EBITDA was £53.3m, up 34.6% on the 2025 figure of £39.6m. However revenue fell 24.7% to £917m, which Debenhams Group said was a deliberate consequence of the strategic shift toward the higher-margin marketplace model, under which only commission income – rather than the full transaction value – is recognised as revenue.
Gross merchandise value – pre-returns – was £1.8 billion, down 21.6% from £2.3bn in 2025.
However marketplace GMV was up 14.9% to £620.4m, and now comprises 34.1% of total GMV (FY25: 23.3%).
The Debenhams brand delivered double-digit growth with GMV up 11.6% to £730.0m. It is now the largest brand in the group.
“This has been a year of significant and successful transformation for Debenhams Group,” said CEO Dan Finley. “Since my appointment as group chief executive in November 2024, I have been sharply focused on executing our multi-year turnaround strategy – and the progress is clear.
“We delivered £53.3m of adjusted EBITDA, up 35% year-on-year following two trading upgrades and turned every brand profitable on the same basis.
“The rebrand to Debenhams Group in March 2025 marked the defining moment. Our capital-lite, stock-lite, cost-lite, cash-generative marketplace model has now been rolled out across the entire group.
“FY26 has been a year of decisive action. The cost base has been reset, warehouse consolidation completed, the tech re-platform delivered, stock rightsized, and onerous costs exited. The turnaround is firmly on track.”
PrettyLittleThing went from a £1m loss in FY25 to a £14m profit in FY26, meaning all its brands are now profitable at an adjusted EBITDA level.
“We consolidated all warehouse operations into Sheffield, delivering £33m of recurring savings, unified three technology platforms into a single AI-powered stack saving £38m annually, renegotiated over 150 contracts for £35m in savings, refinanced the group and raised £40m through an oversubscribed equity raise, and reduced statutory losses after tax by £218m year-on-year,” added Finley.
“Our focus now shifts to growth, and the turnaround continues at pace, with momentum in our multi-year strategy accelerating since year end.”