Debenhams Group, the owner of brands including boohoo, Debenhams, and PrettyLittleThing, has upgraded its full-year earnings guidance after trading above expectations, with adjusted EBITDA now forecast to reach £50 million for the year ending 28 February 2026.
The online platform operator attributed the improved performance to sustained momentum in its flagship Debenhams brand, a notable upturn in its Youth Brands division, and accelerated delivery of its transformation programme. All brands within the group continue to trade profitably.
Shares Debenhams Group, which still trades under the name boohoo Group, jumped over 6% on Wednesday.
The turnaround at PrettyLittleThing has proved to be key driving force in the group’s turnaround. The pace and scale of PLT’s recovery has prompted the board to reverse its previous decision to classify the brand as an asset for sale. Given the substantial opportunity ahead as a fashion-led marketplace, PLT will now be retained and reported within continuing operations for the current year, contributing materially to improved profitability.
“Progress is being driven by continued momentum in its Debenhams brand, but importantly, all of its brands are trading profitably,” explained Aarin Chiekrie, equity analyst, Hargreaves Lansdown.
“That includes the once-struggling PLT (PrettyLittleThing), which the group had been looking to offload. But there’s been a step-change in performance since shifting PLT to a marketplace model. This model involves allowing third-party brands to sell their goods on its online platform, with PLT taking a cut of any third-party sales made, and banking just that cut as revenue.”
Beyond operational improvements, Debenhams is pursuing value-realisation initiatives through licensing opportunities and the disposal of non-core assets. The company expects these asset sales to materially reduce net debt within the next 12 months.