**Summary**
Boohoo Group Plc, now operating as Debenhams Group, released its final results for the year ended 28 February 2025, highlighting a significant turnaround effort under new leadership. The group reported an Adjusted EBITDA of £41.6 million, driven by aggressive cost-cutting measures, including £50 million in annualized headcount savings. The Debenhams brand performed exceptionally, with a 34% year-on-year GMV growth to £654 million and an Adjusted EBITDA of £25 million. The group reduced capital intensity by cutting stock holdings by over 50% and capex by more than 50%. Net debt decreased to £78.2 million, supported by a £39 million equity raise and the sale of non-core assets. Post-year-end, the group secured a new £175 million 3-year finance facility, enhancing financial flexibility.
The groups strategy focuses on the Debenhams brands capital-lite, stock-lite, cost-lite, and cash-generative marketplace model, which serves as the blueprint for the wider groups turnaround. Efforts are underway to reposition and right-size Youth Brands, with a potential sale of PLT being explored. All brands are now trading profitably in terms of Adjusted EBITDA. The group aims to become a leading shopping destination by connecting customers with beloved brands, emphasizing sustainable profit growth.
**Key Financial Highlights (FY2025)**
**Group GMV (pre-returns)** Decreased 2% to £1,606.8 million.
**Debenhams GMV** Increased 34% to £654.0 million.
**Revenue** Fell 12% to £790.3 million, reflecting the shift to a marketplace model.
**Gross Margin** Down 50bps to 52.6% due to increased promotional activity.
**Adjusted EBITDA** Increased slightly to £41.6 million, with a margin improvement to 5.3%.
**Adjusted Loss After Tax** Decreased to £43.4 million.
**Inventory** Reduced by £135.8 million to £72.2 million.
**Capex** Significantly reduced to £27.5 million.
**Net Debt** Decreased to £78.2 million.
**Strategic Initiatives**
1. **Operating Model Transformation** Reduced cost base by £50 million, halved stock to £72 million, and consolidated Youth Brands onto a common ecosystem.
2. **Debenhams Brand Supercharging** Expanded partnerships, launched Debenhams Pay+, and grew Delivered by Debenhams and Debenhams Ads.
3. **Pivot to Fashion-Led Marketplaces** Launched marketplaces for boohoo, PLT, and boohooMAN, with Karen Millen accelerating growth through a broader marketplace model.
**Outlook**
Strong and profitable growth expected in Debenhams brand in H1 FY26.
Adjusted EBITDA for continuing operations in H1 FY26 anticipated to be ahead of H1 FY25.
Medium-term opportunity remains significant, with a focus on sustainable profit generation.
**Post-Balance Sheet Events**
Completed a new £175 million 3-year financing arrangement.
Assigned the Daventry warehouse lease, resulting in a £35.4 million gain.
Sold Britannia Row property for £9.0 million, incurring a £0.5 million loss.
The group is committed to its multi-year turnaround strategy, aiming to restore profitability and unlock value for shareholders under new leadership and strategic direction.