Boohoo Group PLC (LSE:DEBS) shares rose 2.6% following the release of FY25 results, which showed adjusted EBITDA of £41.6 million, signaling progress in the company’s turnaround strategy despite ongoing challenges.
As part of its restructuring plans, the group is evaluating a potential sale of PrettyLittleThing (PLT). The strongest performer was the Debenhams brand, which saw gross merchandise value (GMV) grow 34% year-on-year to £654 million and delivered adjusted EBITDA of £25 million, up £14 million from the prior year. This growth highlights the company’s shift toward a “capital-lite, stock-lite, cost-lite, cash-generative marketplace model,” now central to its strategy.
“The business has been through a very challenging period which is reflected in these results,” said Dan Finley, Group CEO, who assumed the role in November 2024. “I want to assure shareholders that the business is taking the necessary actions, quickly and decisively, to address the challenges that we face.”
Boohoo has reduced inventory by more than 50% and cut capital expenditure by over half compared with the previous year. Net debt declined to £78.2 million from £95 million in FY24, supported by an oversubscribed £39 million equity raise and the sale of non-core property assets.
All brands are now profitable on an adjusted EBITDA basis, and the company expects first-half FY26 adjusted EBITDA for continuing operations to surpass the same period last year. The group also secured a new three-year financing facility of up to £175 million, replacing its previous facility more than a year ahead of maturity.
“I strongly believe in the medium-term opportunity for our group,” Finley added. “We continue forward as Debenhams Group under new leadership, a new strategy, and a new direction.”
The company recorded exceptional costs of £198.7 million for continuing operations, including expenses related to warehouse closures, stock clearance, and restructuring as part of its transformation plan.
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