LONDON - Boohoo Group is changing its name and rebooting its business model in an increasingly difficult environment for online retail at every level of the market.
Group chief executive officer Dan Finley has only been in the role for a few months, but on Tuesday he unveiled a mega-shakeup aimed at replicating his success turning around Debenhams, which Boohoo acquired out of administration in 2021.
purchased the business, but not the nationwide chain of physical stores, and said the multi-brand platform is now generating GMV of 654 million pounds, and net sales of 205 million pounds with a 12 percent EBITDA margin.
Debenhams also owns the fashion labels Wallis, Burton, MissPap, Coast, Oasis, Dorothy Perkins and Warehouse, which Finley said are thriving, with a combined 7 percent EBITDA margin.
Finley said Tuesday that Boohoo will be renamed Debenhams Group with immediate effect and the plan is to transform it into a multi-brand platform, with a "stock-lite and capital-lite" approach.
"The successful turnaround of Debenhams is our blueprint for the wider turnaround of the group. The turnaround of our youth brands is underway and will take time. I have inherited significant challenges. I can see their future potential as they evolve into fashion-led marketplaces and adopt a leaner operating model," he said.
The youth brands include Boohoo, Pretty Little Thing and Boohoo Man, which have a combined GMV of more than 1.5 billion pounds.
Finley said recent trading has been tough, and the plan is to "right size" stock levels by discounting heavily and realigning market spend.
Going forward, he said, those brands will operate as "fashion-led marketplaces with a strong consumer proposition."
He argued the move will increase the group's share of wallet and reduce future stock holding requirements which, in turn, will drive higher profitability and cash generation.
Finley added: "We go forward as Debenhams Group. This is a defining moment in our journey, reflective of our new strategy, new leadership and new beginnings. It will be a leaner, faster and more technologically advanced business. I am confident our best days are ahead of us, and I am excited for our future."
Finley also updated on other group divisions. Karen Millen has been transformed into a digital first, premium brand with GMV of 157 million pounds.
"The future growth potential [of Karen Millen] is significant as it evolves into a premium lifestyle destination, accelerated through a marketplace [model] including pre-loved luxury, licensing and international expansion," he said.
As part of the re-boot, the group has also made some operational changes, shutting its U.S. distribution center, selling its London offices, and reducing headcount and the overall cost base.
On Tuesday, the group also updated on trading for the full year to 2025. GMV pre-returns were down 10 percent year-on-year, despite "very strong" performance at Debenhams.
Revenue was 1.22 billion pounds, down 16 percent year-on-year. Adjusted EBITDA is set to be 40 million pounds. Full-year results will be reported later in the spring.
According to the company, exceptional one-off costs for fiscal 2025 will include those related to the closure of the U.S. distribution center, redundancy costs associated with headcount reduction, and a one-off non-cash cost of around 40 million pounds for the writedown of surplus stock in the youth brands division.
The company clarified that the company will operate under the name of Debenhams Group with immediate effect. The name change will be voted on by shareholders during a general meeting set for March 28 in .