Debenhams Group (DEBS) investor relations material

Strategic transformation and rebranding

• Debenhams has completed a multi-year turnaround, now serving as the main driver of group profitability and growth.

• The group is rebranding as Debenhams Group, pivoting to a marketplace-led, stock-lite, and capital-lite business model.

• Debenhams' model will be extended across all group brands, including youth brands and Karen Millen, to accelerate value creation.

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

• A new ESG strategy underpins the transformation, with partnerships for supply chain transparency, environmental impact, social change, and talent development.

Business model and financial performance

• Operates a stockless marketplace model, earning a percentage gross margin on each sale and minimizing inventory risk.

• FY25 group GMV pre-returns was £1,930.8m, down 10% year-on-year, with revenue at £1,220.3m, down 16%.

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

• Fashion business now delivers a 7% EBITDA margin after turnaround; CapEx in FY25 was £1.2m.

• Adjusted EBITDA for FY25 is expected to be around £40m, with exceptional one-off costs from restructuring and stock write-downs.

Growth strategy and innovation

• The platform hosts over 15,000 brands, with new additions daily, driving network effects and consumer choice.

• Retail media and fulfillment services (Delivered by Debenhams) are new profit drivers.

• Launch of Debenhams Pay Plus aims to enhance payment options and customer lifetime value.

• Plans to double brand consideration and significantly increase purchase intent among consumers.

• Designers at Debenhams relaunches this autumn/winter, with expansion to more platforms and markets.