Boohoo Group PLC (AIM:BOO) is changing its name but Deutsche Bank kept its 'sell' rating on the shares after yesterday's update.
The fast fashion retailer provided a trading statement alongside news of a re-brand of the group to Debenhams.
In that statement, it increased ambitions for Debenhams' potential, plans to transition its Youth Brands arm (Nasty Gal, MussPap, PrettyLittleThings and Boohoo) to a marketplace model and a new internally appointed CFO.
"Overall trading was softer than we had modelled for," said analyst Alison Lygo, and guidance for 2025 EBITDA of around £40 million is about 10% below consensus forecasts.
Growing gross merchandise value (GMV) growth at Debenhams may be strong at 34%, but Lygo said she estimates the marketplace element "still only accounts for circa £50 million of revenue and £13 million EBITDA.
"The energy and focus of the new management team is evident, but there is much still to be delivered in scaling, and we expect much in way of marketing investment to get there."