In what it describes as a “significant and successful” year of transformation, Debenhams Group has significantly narrowed its pre-tax losses from £108.3million for the year to 28 Feb 2026, down from £326.4million a year before.

Dan Finely, Group CEO of Debenhams, commented that this represented “a year of significant and successful transformation.”

“Since my appointment in 2024, I have been sharply focused on executing our multi-year turnaround strategy – and the progress is clear,” he added.

The turnaround follows a major cost cutting programme, the closing one of its warehouses and making sustained improvements to its tech platform. On the innovation front, Debenhams announced a new partnership with PayPal to deliver AI-driven shopping experiences in Feb 2026 as well as further investments into post-purchase AI, teaming up with Seel to support seamless returns.

PrettyLittleThing and the group’s Debenhams brand were two of the key growth drivers. Debenhams’ GMV grew +11.6%, while Pretty Little Thing returned to profit, moving from a £1million in the red in FY25 to posting £14million in profit in FY26. 

Finley went on to say that the retail group’s efforts would now focus on growth: “the turnaround continues at pace, with momentum in our multi-year strategy accelerating since year end.”

“The cost base has been reset, warehouse consolidation completed, the tech re-platform delivered, stock rightsized and onerous costs exited. The turnaround is firmly on track.”