Loading...
Back to narrative

DEBS: AI Rollout Will Support Margins While Sales Trends Remain Subdued

Digital-first Model Will Yield Cost Savings And Streamlined Operations

DEBS logo
DEBS
AnalystConsensusTarget
Not Invested
Published 28 Mar 2025

Update shared on 16 Dec 2025

Fair value Increased 0.90%
Previous
n/a
n/a
AnalystConsensusTarget's Fair Value
n/a
Loading
1Y
-34.7%
7D
-15.4%

Narrative Update

Analysts have nudged their price target for boohoo group slightly higher to reflect a modest uplift in estimated fair value to approximately £0.25 per share. This is supported by expectations of improved profit margins, despite slightly softer revenue growth assumptions and a higher future P/E multiple.

What's in the News

  • Debenhams Group, part of boohoo group, has rolled out a new agentic AI solution to manage sales, stock and pricing more effectively across its brands during the key Golden Quarter trading period (Key Developments).
  • The AI system combines data on stock, pricing and promotions to give merchandising teams a clearer view of demand and performance, enabling faster responses as shopping patterns shift through the season (Key Developments).
  • The technology can predict and guide decisions and act on them autonomously, improving decision speed and accuracy and saving merchandising teams time each month (Key Developments).
  • The AI rollout strengthens planning and coordination across the Group ahead of Black Friday and the festive shopping season, supporting more efficient and agile trading (Key Developments).
  • Debenhams Group began its AI journey with Peak, a UiPath company, in June to explore enhancements to product pricing and promotions, with this latest deployment representing a further step in its innovation investment (Key Developments).

Valuation Changes

  • Fair Value: nudged slightly higher from approximately £0.246 to £0.248 per share, reflecting a modest uplift in estimated intrinsic value.
  • Discount Rate: increased marginally from about 10.84 percent to 10.86 percent, indicating a slightly higher required rate of return.
  • Revenue Growth: revised down modestly, with the long term growth assumption moving from approximately negative 1.11 percent to negative 1.15 percent.
  • Net Profit Margin: raised from around 3.07 percent to 3.44 percent, signalling expectations of somewhat stronger profitability.
  • Future P/E: increased from roughly 18.6x to 21.2x, implying a modestly higher valuation multiple for the shares.

Have other thoughts on boohoo group?

Create your own narrative on this stock, and estimate its Fair Value using our Valuator tool.

Create Narrative

Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.