Published by Global Banking & Finance Review®
Posted on January 28, 2026
2 min readLast updated: January 28, 2026
Add as preferred source on Google
Debenhams Group lifts its 2025 profit forecast, driven by strong brand performance and effective turnaround strategies.
By Sri Hari N S
Jan 28 (Reuters) - British fashion retailer Debenhams raised its annual profit forecast on Wednesday and said it would no longer sell its PrettyLittleThing (PLT) brand, citing the success of turnaround efforts.
Debenhams shares jumped around 13.5% before paring gains to stand around 8% higher at 25.5 pence at 1231 GMT.
The company has been looking to cut costs and debt after profit was hit by supply-chain challenges, weaker demand and increased competition from other low-cost fast fashion brands.
Debenhams said it was "pleased with the pace and scale of PLT's turnaround and the resulting material improvement in profitability", after previously exploring plans to sell the brand.
The company rebranded to Debenhams from Boohoo last year following a turbulent period marked by leadership changes and a dispute with Mike Ashley-owned Frasers Group, its top shareholder, which was pushing for a management overhaul.
Boohoo took control of PLT in 2020, buying the Debenhams brand a year later after the high-street retailer collapsed.
STRATEGY IN FOCUS
Debenhams said it is still progressing the sale of non-core assets to cut debt. Net debt stooddebs.l
at 111.1 million pounds ($153.05 million) at the end of August.
RBC Capital Markets analysts stressed the need for Debenhams to improve its competitiveness, particularly outside the UK, noting that while its brands offer "attractive price points", service levels have lagged peers internationally.
Debenhams forecast adjusted core profit for the 12-month period through February 28 of about 50 million pounds ($68.88 million), a 26.3% rise from the previous year, and up from its earlier expectation of around 45 million pounds.
($1 = 0.7259 pounds)
(Reporting by Sri Hari N S in Bengaluru; Editing by Sherry Jacob-Phillips, Kirsten Donovan)
Adjusted core profit refers to a company's earnings before interest, taxes, depreciation, and amortization, adjusted for non-recurring items. It provides a clearer view of a company's operational performance.
Turnaround efforts are strategic actions taken by a company to improve its performance, often after a period of decline. These can include restructuring, cost-cutting, and enhancing operational efficiency.
Explore more articles in the Finance category
