Debenhams reports losses as Boohoo's brands suffer mixed fortunes (2024)

Since being founded in 2006, Boohoo has grown to be one of the largest online fashion companies in the UK.

The Manchester-headquartered group has been steadily growing its stable of brands since acquiring PrettyLittleThing in 2017.

It's now home to major household names such as Debenhams, which it bought for £55m when the department store chain collapsed into administration.

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Boohoo, being a listed company, files its accounts with the London Stock Exchange every quarter. However, it does not include a breakdown of each of its brand's performance in those figures.

Those businesses remain private and their results have only just been filed with Companies House.

Boohoo reported its group results for the financial year to February 28, 2022, in May. It also posted its results for the following six months in September.

Using the newly-published accounts for Boohoo's roster of brands, BusinessLive has outlined how each of them has fared over their latest financial year.

Debenhams

Debenhams reports losses as Boohoo's brands suffer mixed fortunes (1)

Debenhams was bought by Boohoo in a £55m deal in January 2021 when the department store chain collapsed into administration.

All the stores were closed and the brand now exists online only.

In the period from January 14, 2021, to February 28, 2022, Debenhams posted a revenue of £56.9m and a pre-tax loss of £11.7m.

A statement signed off by the board, which was also included in all of the other financial documents for the other group brands, said: "The global market for online fashion is forecast to continue to grow, which provides a favourable backdrop for the company with much opportunity for further growth.

"Customers throughout the world are seeking a wide choice of quality fashion forward products at value prices, generally lower than those available on the high street, with the convenience of home delivery.

"The company's target market has a high propensity to spend on fashion and the market has proven to be quite resilient to external macroeconomic factors.

"The pandemic has impacted our business and is most significantly seen in the unpredictability of customer demand, the rate of customer returns, the increase in shipping times and the cost of shipping on both inbound and outbound products.

"Some of these factors, such as the rate of customer returns, have already reverted from the low rates during the pandemic to rates seen before the pandemic, while other factors such as the shipping cost increases are taking longer to move towards pre-pandemic levels."

Debenhams added: "We remain extremely confident in the company's future growth prospects, and as short-term demand uncertainty and material cost headwinds as a result of the pandemic unwind, the company's belief that it continues to be capable of executing its strategy aimed at leading the fashion e-commerce market remains unchanged."

PrettyLittleThing

Debenhams reports losses as Boohoo's brands suffer mixed fortunes (2)

A fall in sales outside the UK and USA slowed PrettyLittleThing's growth during its latest financial year as return rates rose.

The brand posted a revenue of £712.2m for the 12 months to February 28, 2022, up from the £710.1m it achieved in the prior year.

However, the company's pre-tax profits fell from £98.7m to £75.1m over the same period.

PrettyLittleThing said its pre-tax profits were impacted by £11.6m of costs related to the automation of its Sheffield warehouse, a £125m project.

The company was established in 2012 by brothers Umar and Adam Kamani. It was bought by Boohoo, which had been co-founded by their father Mahmud Kamani, in January 2017.

Nasty Gal

Debenhams reports losses as Boohoo's brands suffer mixed fortunes (3)

US-focused Nasty Gal was bought by Boohoo in 2017 for $20m after it filed for bankruptcy. It was founded by Sophia Amoruso in LA in 2006.

For the 12 months to February 28, 2022, the brand's revenue decreased from £140.2m to £11.4m and it slipped from a pre-tax profit of £5.8m to a loss of £16.8m.

Nasty Gal said it has established a "strong following" in the UK but that "continued extended delivery times to the key US market, driven by reduced airfreight capacity, have subdued demand".

Its USA revenue fell from £71m to £62.8m while its UK sales went from £42.7m to £31.2m.

Revenue in the rest of Europe also dropped from £15.5m to £9.4m and from £10.9m to £6.8m in the rest of the world.

Karen Millen

Debenhams reports losses as Boohoo's brands suffer mixed fortunes (4)

Karen Millen was founded in 1981 and has been owned by Boohoo since 2019 when it, and its sister company Coast, were bought out of administration for £18m.

The brand became online only and its standalone stores were closed.

For the year to February 28, 2022, Karen Millen's revenue increased from £9.6m to £67.5m and its pre-tax profits jumped from £6.1m to £12.1m.

Its UK sales rose from £27.7m to £45.3m and from £2.4m to £8.8m in the USA.

They also increases from £6.9m to £8.6m in the rest of Europe and from £2.4m to £4.6m in the rest of the world.

Karen Millen said that "exceptional growth" in the USA is "adding to an already highly successful relaunch of this iconic brand".

Coast

Debenhams reports losses as Boohoo's brands suffer mixed fortunes (5)

Founded in 1996, Coast was bought out of administration alongside Karen Millen in 2018. It is now an online only business.

For the year to February 28, 2022, the brand's revenue increased from £12m to £19.5m and it made a pre-tax profit of £1m after making a loss of £1.8m in the prior 12 months.

Its UK sales rose from £11m to £16.4m and from £985,000 to £3.1m in the rest of the world.

Coast said that the "high-growth brand now has a strong wedding and occasion wear range to capitalise on the return to normal life".

MissPap

Debenhams reports losses as Boohoo's brands suffer mixed fortunes (6)

Boohoo acquired MissPap in March 2019 after it had been founded in 2015 by Ashley Ali.

For the 12 months to February 28, 2022, the brand's revenue dipped from £14.5m to £12.7m while its pre-tax losses went from £3.9m to £2.9m.

UK sales fell from £13.6m to £10.8m while revenue in the rest of the world increased from £908,000 to £1.8m.

The company said the fall in gross margin to just under 40% was "driven by higher return rates in the UK".

It added: "Miss Pap continues to provide statement pieces with an affordable price tag."

Oasis

Debenhams reports losses as Boohoo's brands suffer mixed fortunes (7)

The brand was founded in 1991 and was acquired by Boohoo out of administration in June 2020.

For the 12 months to February 28, 2022, the company's revenue jumped from £7.4m to £28.2m but its pre-tax losses widened from £985,000 to £2.5m.

Its UK sales increased from £6.8m to £24.8m and from £582,000 to £3.4m in the rest of the world.

The company said the "rapidly growing" brand "focuses on lifestyle dressing for every occasion".

Warehouse

Debenhams reports losses as Boohoo's brands suffer mixed fortunes (8)

Warehouse was founded in 1976 and entered administration in 2020.

Its brand, assets and stock were acquired by Boohoo at the same time as the Oasis chain.

For the 12 months to February 28, 2022, the brand's revenue surged from £5.6m to £21.3m but its pre-tax losses widened from £857,000 to £2m.

UK sales jumped from £5.4m to £18.6m and its revenue went from £238,000 to £2.6m in the rest of the world.

Burton

Debenhams reports losses as Boohoo's brands suffer mixed fortunes (9)

Burton was founded by Sir Montague Maurice Burton in Chesterfield in 1903. It was acquired by Sir Philip Green's Arcadia Group in 2002.

It entered administration in 2020 and was acquired by Boohoo alongside Dorothy Perkins and Wallis for £25m. All its stores closed in 2021.

For the period from January 26, 2021, to February 28, 2022, the brand's revenue totalled £31.3m and it made a pre-tax loss of £3.3m.

Its UK sales totalled £29.4m and its revenue in the rest of the world was £1.9m.

Dorothy Perkins

Debenhams reports losses as Boohoo's brands suffer mixed fortunes (10)

Dorothy Perkins can trace its roots back to 1909 and became part of the Burton Group in 1979.

It entered administration in 2020 and was acquired by Boohoo alongside Burton and Wallis for £25m. Its stores also closed.

For the period from January 26, 2021, to February 28, 2022, the brand's revenue totalled £74.9m and it made a pre-tax loss of £15.9m.

Its UK sales totalled £70.2m and £4.7m in the rest of the world.

Wallis

Debenhams reports losses as Boohoo's brands suffer mixed fortunes (11)

Wallis was founded in 1923 and was part of the Arcadia Group before its collapse into administration in 2020.

For the period from January 26, 2021, to February 28, 2022, the brand's revenue totalled £27.8m and it made a pre-tax loss of £4m.

Its UK sales stood at £26.1m and its revenue in the rest of the world totalled £1.6m.

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Debenhams reports losses as Boohoo's brands suffer mixed fortunes (2024)

FAQs

Debenhams reports losses as Boohoo's brands suffer mixed fortunes? ›

Debenhams was bought by Boohoo

Boohoo
Boohoo Group plc is a British online fast-fashion retailer, aimed at 16 to 30 year olds. The business was founded in 2006, and had sales in 2019 of £856.9 million. Boohoo Group plc. Company type. Public Limited Company.
https://en.wikipedia.org › wiki › Boohoo
in a £55m deal in January 2021 when the department store chain collapsed into administration. All the stores were closed and the brand now exists online only. In the period from January 14, 2021, to February 28, 2022, Debenhams posted a revenue of £56.9m and a pre-tax loss of £11.7m.

What is Boohoo doing with Debenhams? ›

Back in January 2021, Boohoo bought Debenhams out of administration in a £55m deal and resurrected the 242-year-old department store as an online-only brand. Lyttle says it is “very happy” with Debenhams' performance “from an investment point of view” as it is already profitable.

What happened to Debenhams online shopping? ›

Boohoo purchased the name and associated website operations from the administrators of Debenhams for £55 million in January 2021. On 12 April 2021, Boohoo relaunched the Debenhams website with a new full range of products and brands, mostly brands owned by Boohoo.

What brands belong to Debenhams? ›

Concessionaire Brands
SellerBrandProduct Type
WatchShopBering Jewelleryjewellery
Dune LondonBertiefootwear & accessories
L&RBestformlingerie
EPE InternationalBeurerhome & electricals
62 more rows

Who took over Debenhams brands? ›

The Debenhams brand and website were purchased by the online retailer Boohoo for £55M in January 2021.

Why is Boohoo struggling? ›

Boohoo has cut more than 1,000 jobs and dived into debt after its losses soared and sales slumped 13% amid heavy competition from the Chinese online seller Shein and the revival of the high street after the pandemic lockdowns.

What is the purpose of Boohoo? ›

Founded in Manchester in 2006, boohoo group is a fashion forward, inclusive and innovative business. The Group's brands are complementary, vibrant and scalable, delivering inspirational, on-trend fashion to our customers 24/7.

Why is it called Debenhams? ›

The business was formed in 1778 by Messrs Flint and Clark, who began trading at 44 Wigmore Street in London as a drapers' store under the name Flint & Clark. In 1813, William Debenham became a partner and the corporate name changed to Clark and Debenham.

Who is Boohoo owned by? ›

Boohoo was founded in 2006 by Mahmud Kamani and Carol Kane, who respectively serve as group executive chairman and executive director, and who previously supplied high street chains such as Primark and New Look.

Which group is Debenhams part of? ›

The Debenhams brand is owned by boohoo group plc, a leading global fashion eCommerce platform, operating offline department stores exclusively in MENA region.

Will Debenhams come back? ›

Debenhams continues online under new ownership of BooHoo.com, which bought it out of liquidation for £55million. And it has made a return to the High Street - in December, a Debenhams shop in Manchester became the first to reopen in the UK.

Is Debenhams successful? ›

Debenhams was bought by Boohoo in a £55m deal in January 2021 when the department store chain collapsed into administration. All the stores were closed and the brand now exists online only. In the period from January 14, 2021, to February 28, 2022, Debenhams posted a revenue of £56.9m and a pre-tax loss of £11.7m.

Is Debenhams free return? ›

Returns are free for unlimited customers. If you do not have an unlimited subscription, a fee of £1.99 per order will be deducted from your refund. If you have ordered an item from one of our concessions, please use the label sent with your parcel to send the item back to the seller.

What is the Boohoo pay scandal? ›

Almost simultaneous to Labour Behind the Label's report, The Sunday Times also revealed the findings of its own investigation in which it uncovered evidence that factory workers at Boohoo's Leicester location were paid less than half the national working wage, receiving just 3.50 pounds an hour.

What are the allegations against Boohoo? ›

UK-based fashion retail group Boohoo has been accused of making 'surface deep' changes in response a BBC Panorama documentary alleging poor purchasing practices and concern over worker conditions in its supply chain. A report from the University of Bath, titled 'What happened after the Boohoo scandal?

What is the Boohoo label scandal? ›

The incident occurred at Boohoo's Leicester factory, opened to promote end-to-end garment production in the UK, and resulted in labels on certain items being removed and replaced with new labels incorrectly stating that the products were made in the UK.

What is the Boohoo sustainability scandal? ›

Fast-fashion firm Boohoo has broken promises to make its clothes fairly and ethically, a BBC Panorama investigation has found. An undercover reporter at the company's Manchester HQ saw evidence of staff pressuring suppliers to drive prices down, even after deals had been agreed.

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