Fashion
Debenhams Group results show EBITDA up, GMV down, explores sale of underperforming PLT
Published
August 26, 2025
Debenhams Group (which used to be Boohoo Group) issued its annual results for the year to the end of February on Tuesday afternoon and said adjusted EBITDA rose 3% to £41.6 million.
There were plenty of negative figures in the report too, but some things are clear – this is still a huge operation selling a massive amount of fashion and other products. And certain parts of the business are performing much better than others. The Debenhams brand in particular is a standout performer. But PrettyLittleThing (PLT), which was recently relaunched, clearly isn’t. It had a negative impact on the results and the company is exploring its sale.
The shares spiked upwards by about 3% on the news, which is understandable given the negative impact PLT has had on the group’s performance.
CEO Dan Finely said: “We have a clear plan to transform the business and a route map to generating sustainable profit growth. We are focused on delivering on the huge opportunity ahead for the Debenhams brand. Work is progressing to reposition and right-size the Youth Brands.
“This will be a multi-year turnaround. As part of our ongoing business review, we are exploring a potential sale of PLT. 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.”
He added that “all our brands are now trading profitably in terms of adjusted EBITDA”.
The numbers
Big news indeed, although at this stage it’s not certain that PLT will be sold. So let’s look at the figures for the group with and without PLT being included. In what was clearly a year of transition as the company changed its leadership and dived deeper into a marketplace model, GMV pre-returns and excluding PLT fell 2% to just under £1.607 billion and including PLT GMV fell 10% to almost £2.322 billion.
The Youth Brands’ GMV fell 19% to £795.6 million without PLT and fell an even wider 22% to £1.51 billion with PLT included. Meanwhile Karen Millen fell 3% to £157.1 million. But the Debenhams brand was up an impressive 34% at £654 million.
GMV for the company post-returns was up 1% with PLT excluded at just over £1.137 billion but was down 8% with it included at £1.639 billion.
Total revenue excluding PLT fell 12% to £790.3 million and with it included fell 17% to just under £1.218 billion.
The gross margin excluding PLT fell to 52.6% from 53.1% and including it fell to 50.7% from 51.8%.
That’s a lot of numbers to digest but it’s very clear the PLT is an issue.
Profit… and loss
Profit-wise, the company highlighted the adjusted EBITDA figure mentioned at the start, but some of the other figures in the report were less impressive with adjusted EBIT a loss of £21 million. That said, this was an improvement on the £30.7 million loss on that basis a year earlier. The adjusted loss after tax also narrowed by 12% to £43.4 million.
Dan Finley, who took the helm last November, said that when he stepped up from running the Debenhams brand, “the board recognised the need for change following a long period of sustained and unacceptable underperformance. My immediate focus has been on stabilising the business and positioning it to take advantage of the significant opportunities ahead”.
Of that happily positive adjusted EBITDA figure, he added: “On appointment, [such an achievement] seemed improbable, but we quickly came up with a plan, confirmed our position with the market and executed it. This has only been possible due to the aggressive actions subsequently taken, including £50 million of annualised headcount savings.”
Debenhams brand leading the way
Finley called out “the standout performance of the Debenhams brand” as the year’s highlight and the brand’s adjusted EBITDA of £25 million (up £14 million year on year).
And he explained that the Debenhams “capital-lite, stock-lite, cost-lite, cash-generative marketplace model sits at the heart of our new strategy. The multi-year turnaround of Debenhams is the blueprint for the turnaround of the wider group”.
Other achievements include the group having “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”.
Improvements in its debt position have also been key and Finley explained that while “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”.
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The Apparel Export Promotion Council (AEPC) said the industry had reconciled to a 25 per cent reciprocal tariff but the further burden would make Indian exports uncompetitive. “The additional 25 per cent will close the US market for Indian apparel. Exporters will now face a tariff differential of 30–31 per cent against major competing nations,” AEPC Secretary General Mithileshwar Thakur told Fibre2Fashion. He urged immediate fiscal support until a bilateral trade agreement can be reached.
India’s apparel industry warns of an existential crisis as US tariffs on exports will soar to above 50 per cent from August 27, 2025.
Exporters face a tariff gap of over 30 per cent against competitors, risking three million jobs and 20,000 factories.
Industry leaders urge urgent fiscal support and stronger diplomatic engagement until a bilateral trade pact is secured.
Jasveen Kaur, Senior Director of Merchandising at New Times Group, described the tariff shock as “seismic,” saying nearly 25 per cent of Tiruppur’s US-bound knitwear orders have already been paused or cancelled. “This is not about two per cent of GDP—it is about millions of jobs and the survival of entire communities,” she said, adding that exporters are slashing prices to keep shipments moving as US buyers renegotiate or withdraw.
Industry estimates suggest around three million jobs and 20,000 factories are at risk. While some exporters are exploring joint ventures in Bangladesh, Sri Lanka, and Southeast Asia, Kaur noted that diversifying markets and securing new buyers could take more than a year. “We need decisive government action and stronger diplomatic engagement with the US,” she appealed.
Sanjay K Jain, Chairman of the ICC National Textiles Committee and MD of TT Ltd, echoed these concerns. “The industry is at a standstill, and 50 per cent of orders (for export to the US) will likely be cancelled. The rest can only be retained if exporters absorb losses. The impact of such super-high tariffs will be terrible and felt across the entire value chain,” he warned.
While the government’s recent move to waive the 11 per cent cotton import duty was welcomed, industry players said it offers little relief against the tariff shock. Exporters are focusing on cost optimisation, targeting a 15–20 per cent reset, but say sustained government support is vital to prevent large-scale disruption in India’s apparel sector.
Fibre2Fashion News Desk (KUL)
NITMA president Sidharth Khanna warned that the current inverted duty structure—where polyester staple fibre (PSF) is taxed at 18 per cent and polyester spun yarn (PSY) at 12 per cent while fabric is at 5 per cent—is unworkable for spinners. He urged a cut in PSF and PSY rates to 5 per cent to align with fabric.
India’s textile sector is under strain as steep US tariffs take effect today.
The Northern India Textile Mills Association (NITMA) has urged the GST Council, meeting on September 3–4, 2025, to address the inverted duty structure in the man-made fibre value chain by reducing GST on polyester staple fibre (18 per cent) and polyester spun yarn (12 per cent) to 5 per cent, aligning with fabric.
According to Khanna, the present system burdens the industry with blocked working capital in GST refunds, unutilised input tax credits, administrative delays, loss of state SGST incentives, and unfair competition from imports.
“This is a critical moment for India’s textile sector. Decisive action to remove the inverted duty structure will not only counteract the impact of US tariffs but also unlock growth and investment across the MMF value chain, thereby making this event a blessing in disguise,” Khanna stressed.
Fibre2Fashion News Desk (KD)
By
AFP
Published
August 28, 2025
Its striking architecture, framed by latticework inspired by traditional Yoruba textiles, makes Alara — west Africa’s first fashion and design “concept store” — an imposing landmark in Lagos, Nigeria’s bustling commercial capital.
Founded by Reni Folawiyo a decade ago, Alara embodies her vision of “Afro-lux,” a concept she defines as designs that balance tradition with modernity while positioning African fashion on the global stage.
Inside the store, upscale African labels share space with international brands, decorative art, and books — part of Folawiyo’s mission to place African creativity on equal footing with established global names. The building’s distinctive lattice is inspired by adire, a textile popular among the Yoruba people of southwest Nigeria.
“A lot of the beautiful things that people were making in different parts of Africa were not celebrated in the way that I thought they should be,” said the 60-year-old, explaining how rural craftsmanship often inspires Alara’s collections. “I felt very strongly in my belief that these objects and these people had value.”
Music stars become style ambassadors
West African design is experiencing a cultural moment, Folawiyo noted in an interview in Lagos, where she wore sunglasses with vivid pink lenses.
In May, Nigerian music stars Burna Boy, Tems, and Ayra Starr appeared at New York’s Met Gala, dressed by British-Ghanaian designer Ozwald Boateng.
But for Folawiyo, global recognition requires more than occasional runway appearances. “At the moment, the best way to platform designers outside Africa is to partner and collaborate with institutions that are of repute,” she said, citing her recent pop-up store and exhibition at the Brooklyn Museum and a collaboration with the Los Angeles County Museum of Art.
Drawing from her Yoruba heritage — with its intricate textiles, bold colors, and elaborate ceremonies — Folawiyo also finds inspiration in Senegal’s rugged aesthetics and the Ivory Coast’s refined sophistication. “Alara is my own idea of what a celebration of Africa looks like,” she said.
Culture through cuisine
Behind the boutique lies NOK, a restaurant led by executive chef Pierre Thiam, the Senegalese culinary pioneer who has brought west African food to U.S. diners.
While still high-end, NOK offers more accessible prices than Alara’s fashion and design pieces — a delicate balance in a country marked by extremes: wealthy elites in the oil and tech sectors, a shrinking middle class strained by inflation, and millions of informal workers.
Amid Alara’s stark interior of black walls and white concrete, luxury items stand out as bold statements. A green dress by Nigerian label Eki Kere carries a price tag of 325,000 naira (around $210), while a sculptural table from Senegalese-Nigerian studio Salu Iwadi can fetch up to ten times more, underscoring the store’s blend of accessible fashion and high-end design.
Folawiyo herself comes from Lagos’s elite, as the wife of businessman Tunde Folawiyo and daughter of the late attorney general of Nigeria’s former Western Region, Lateef Adegbite.
But building her vision of African luxury was not easy. Convincing investors and partners to believe in “Afro-lux” proved challenging. “I was very committed to it and I had great belief in myself and my idea,” she said.
Now firmly established in Nigeria, Folawiyo also organizes international fashion showcases, including at Barbados’s Carifesta XV this month. But for her, the industry’s long-term success depends on “passing on knowledge to future generations.”
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