Shares in boohoo group plc, which now trades as Debenhams Group, have risen by more than 5% to 25p (8:42am) in early trading today after the company upgraded its profit expectations for the current financial year.
The AIM-listed ecommerce group said it is trading ahead of expectations and now expects adjusted EBITDA of £50 million for the year to 28th February, up from previous guidance of around £45m issued in November.
It also confirmed that it would be reversing any plans to sell PrettyLittleThing after a huge improvement in the brand.
The profit upgrade reflects improving performance across its youth brands and faster-than-expected progress on its wider transformation plan, with all brands now trading profitably.
The Manchester-based business highlighted the pace and scale of PLT’s turnaround, which has delivered a material improvement in profitability.
PLT had previously been held as an asset for sale, but given the momentum behind the brand and the opportunity ahead as a fashion-led marketplace, the board has decided to retain it within the group.
As a result, PLT will be reported as part of Debenhams’ continuing operations in the current financial year.
It is also exploring significant licensing opportunities and continues to advance the sale of non-core assets, moves it expects will materially reduce net debt over the next 12 months.
The update marks a shift in tone from late November, when the group reported a sharp decline in revenues for the six months ended 31st August 2025.
Revenues fell 23% to £296.9m, reflecting ongoing pressure on the youth brands that originally made boohoo’s name, while Debenhams was the only brand to grow during the period as the group transitioned towards a marketplace model.
The company’s shift towards a marketplace strategy has seen around 20,000 partners join its ecosystem, double the number a year earlier, with all brands now operating within the marketplace.
Debenhams Group now serves millions of customers across five shopping destinations – Debenhams, boohoo, PLT, MAN and Karen Millen – as it continues to reposition itself as a digital-first retail platform.
The group’s leadership team and other directors survived a shareholder vote in September despite the best efforts of shareholder Frasers Group, with which it has fought a very public battle.
Since the update on revenue decline at the end of November, its share price has risen from 18.3p to 25p and its market cap is now over £330m.
Should shares hit the £3 mark, CEO Dan Finley will net £148.1m and CFO Phil Ellis £14.8m.
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