Debenhams Group (LSE:DEBS) said trading for the year to 28 February 2026 is running ahead of expectations and has upgraded its full-year outlook, now forecasting adjusted EBITDA of £50 million for total operations, compared with previous guidance of around £45 million. The improved outlook reflects continued momentum in the core Debenhams brand, better performance across its Youth Brands portfolio and steady progress with its wider transformation programme, with all brands remaining profitable.
The company highlighted a particularly strong recovery at PrettyLittleThing (PLT), which has delivered a material improvement in profitability. In light of this turnaround, the board has decided to reverse its earlier intention to sell the brand. PLT will now be retained within the group as a fashion-led marketplace and reclassified as part of continuing operations. Alongside this strategic shift, Debenhams Group is pursuing licensing opportunities and the disposal of non-core assets, with the aim of materially reducing net debt over the next 12 months.
From an investment perspective, the outlook remains mixed. While the profit upgrade and positive strategic developments provide encouragement, the group continues to face challenges linked to weak historical financial performance and stretched valuation metrics. Share price technical indicators suggest some short-term positive momentum, though overbought signals point to the need for caution. Overall, recent corporate actions add a degree of optimism, but financial risk remains a key consideration.
More about Debenhams Group Plc
Debenhams Group, part of boohoo group plc, operates a portfolio of fashion-led online marketplaces spanning fashion, home and beauty. The group runs five digital brands: Debenhams, Karen Millen, boohoo, MAN and PrettyLittleThing (PLT). Founded in 1778 as the UK’s first department store, Debenhams has since evolved into a digital-first retail group serving millions of customers in the UK and internationally.
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