Debenhams has reported widening full-year losses, even as all of its brands returned to profitability on an adjusted basis.
For the 12 months to 28 February, revenue slipped 1% to £790.3m, while the group’s continuing pre-tax loss deepened to £263.9m, compared with £164.4m a year earlier.
Despite the larger deficit, shares rose 2.2% as investors welcomed guidance that adjusted Ebitda is positive across all brands — including Boohoo and Karen Millen — and is expected to rise in the first half of the new financial year.
As part of its strategic review, the retailer confirmed it is exploring a potential sale of PrettyLittleThing (PLT), its fast-fashion brand targeted at young women.
Chief executive Dan Finley, who took charge in November, said:
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.
…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, with a laser focus on profitability and cash generation under new management.
This will be a multi-year turnaround as was the case with the Debenhams brand. 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.
