E-commerce business Boohoo is to rebrand to Debenhams Group after its transformation of the eponymous firm from a department store chain into an e-commerce business.
The company said Debenhams’ turnaround plan, which saw it bought out of administration in 2021 with all its physical stores shut, would now serve as a “blueprint” for the rest of the group.
Debenhams generated GMV of £654m in the year to February, a jump of 34% compared to last year, while revenues rose 10% to £204.6m.
Boohoo said Debenhams was growing rapidly and is “very profitable” and “highly cash generative” thanks to its “stock-lite and capital-lite” business model.
CEO Dan Finley said: “Debenhams is back. The iconic British heritage brand, bought out of administration, has been successfully turned around. Rebuilt for the future and transformed into Britain’s leading online department store.
“We see a clear path to scaling this into a £multibillion GMV business with strong profitability. The successful turnaround of Debenhams is our blueprint for the wider turnaround of the Group.
“We go forward as Debenhams Group. This is a defining moment in our journey, reflective of our new strategy, new leadership and new beginnings.”
The rebrand will see current finance director of Debenhams, Phil Ellis will become Group CFO and a member of the board, replacing Stephen Morana with immediate effect.
Boohoo also unveiled a new partnership with supply chain visibility business Segura, to deliver transparency in its end to end supply chain.
The firm said it was raising its medium term guidance for Debenhams to EBITDA margins of c.20%.
Boohoo shares rose as much as 2.5% in early trade on Tuesday. The stock remains down more than 15% since the start of the year.
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