Debenhams considers selling PrettyLittleThing

Weak performance of PrettyLittleThing is weighing on Debenhams Group’s numbers, which is therefore considering selling the once hip youth brand. The retailer wants to focus even more heavily on a cost-efficient marketplace model.

Decline for youth brands

For the past fiscal year, which ended in late February, Debenhams (formerly Boohoo) saw adjusted gross profit rise 3% to 41.6 million pound (about 48.9 million euros), but gross merchandise value (GMV) fell 10% to nearly 2.322 billion pound (about 2.73 billion euros). This was mainly due to a 22% decline in youth brands within the group. The Debenhams brand stood out positively with a 34% increase to 654 million pound (about 769.3 million euros).

Despite a recent relaunch, PrettyLittleThing is weighing noticeably on group figures. The board is therefore exploring a divestment: “We have a clear plan as Debenhams Group to transform the business and a route map to generating sustainable profit growth. We are focusing on the great opportunity for the Debenhams brand,” said CEO Dan Finley. His recipe is clear: a capital, inventory and cost-light marketplace model that generates cash. “This will be a multi-year turnaround. As part of our ongoing business review, we are exploring a potential sale of PrettyLittleThing.”