boohoo group (DEBS) Investor Update summary

Historical legacy and transformation

• Debenhams, founded 247 years ago, pioneered multi-branded retailing and became an iconic British heritage brand.

• The business has transitioned from a traditional high street retailer to a leading online department store and now serves as the main driver of group profitability and growth.

• The brand now boasts almost 100% recognition and a strong emotional connection with UK consumers.

Business model and growth

• Operates a capital-light, marketplace-led model with no inventory risk, earning 100% gross margin on marketplace sales.

• FY 2025 GMV reached £654 million, up 43% from FY 2024, with EBITDA of £25 million and a 27% margin in the marketplace segment.

• Debenhams generated GMV of £654m and net sales of £205m, achieving a 12% EBITDA margin; medium-term target is a 20% EBITDA margin.

• Operating cash flows improved to £40 million in FY 2025 from a loss in FY 2022.

• The group has delivered £50m in annualised head office cost savings and closed its US distribution centre.

Strategic initiatives and future vision

• Launched retail media and Debenhams PayPlus, expanding revenue streams and enhancing customer experience.

• Focus on increasing consumer consideration and intention to buy, leveraging strong brand awareness.

• Plans to relaunch Designers at Debenhams and expand brand partnerships globally.

• The Debenhams turnaround is seen as a blueprint for the wider group’s transformation, with the model to be extended across all group brands.

• The group aims to become a leading global digital retailer, leveraging the iconic Debenhams brand and next-generation technology.