Debenhams has reported a 65% year-on-year rise in revenue as it announces a pre-tax profit of £4.5mn for the year, up from a loss of £723,00 in the prior 12-month period.
The full year results also saw EBITDA double to £10.4mn, driven by its marketplace strategy. The former high street department store – one of Britain’s longest lived retailers set up in 1778 in London as a draper’s – collapsed into administration in 2019.
Fast fashion chain Boohoo then bought the brand name and its website for £55mn to create a marketplace around the core Boohoo website. This was designed to allow the fashion retailer to rapidly access new demographics, sell an extended range of brands and open itself up to selling cosmetics and homewares.
Dan Finley, chief executive of Boohoo, said: “Debenhams is an iconic British heritage brand. We bought it out of administration and are making great progress transforming it into Britain’s online department store.
“The marketplace model is stock-light, capital-light and highly profitable, as these results show. There is lots of opportunity ahead and we are focused on realising that for the benefit of all shareholders. We have previously announced that the current year started strongly for Debenhams.”
There were reports in October however that Boohoo was considering a major restructure that could see the break-up of the online fashion firm whose brands include Debenhams, Karen Millen and PrettyLittleThing. Boohoo said it was exploring its options to “unlock and maximise shareholder value”.
Debenhams Brands Online which is a separate business, established in May 2023, houses Debenhams-owned brands such as Dorothy Perkins, Oasis and Wallis, reported sales of £138.6mn and a pre-tax profit of £0.95mn for the full year.
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