Boohoo Group’s Turnaround Gains Momentum as Losses Narrow

Boohoo Group PLC (LON: DEBS), now operating as Debenhams Group, has signaled a significant shift in its financial trajectory, reporting narrowed losses and a return to profitability across all brands for the six months ended August 31, 2026.

The company's strategic transformation and disciplined execution are driving this resurgence, with a clear focus on its marketplace model.

The Debenhams brand is leading the charge, showcasing substantial growth with a 20% increase in Gross Merchandise Value (GMV) and a 50% surge in Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) compared to the first half of 2025. The EBITDA margin for Debenhams now stands at approximately 15%.

The marketplace model, central to the company's future, is exhibiting strong performance. With roughly 20,000 partners now integrated into the ecosystem, up from 10,000 a year ago, significant growth potential remains.

All group brands are now marketplace-enabled, leveraging the company's proprietary technology, with 32% of GMV now generated through the marketplace, a notable increase from 19% in H1 2025.

As the fifth anniversary of Debenhams' acquisition approaches, the company expresses confidence in realizing a multi-billion pound GMV opportunity with an approximate 20% EBITDA margin in the medium term. Management expects the Debenhams brand alone to deliver £1 billion in GMV and over £50 million in EBITDA within three years.

The transformation of the Youth Brands, including Boohoo, PrettyLittleThing (PLT), and BoohooMAN, is also underway. All brands are now profitable on an Adjusted EBITDA basis, with marketplaces launched for each. The focus is on profit and cash generation while streamlining revenue.

Cost reduction initiatives are nearing completion, transitioning the company into a lean, tech-enabled online platform. The ongoing fixed cost base has been reduced by approximately £160 million, down from £292 million in February 2024, with expectations to reach roughly £100 million in the near term.

Adjusted EBITDA for H1 2026 reached £20.0 million, a 5% increase compared to H1 2025. The company reported a positive Adjusted EBIT of £1.8 million, a significant improvement from the £9.2 million loss in H1 2025. The statutory loss after tax for continuing operations significantly decreased to £3.4 million from £126.7 million. Net debt has decreased to £111 million from £143 million in H1 2025.

The company anticipates full-year EBITDA to be approximately £45 million, with double-digit percentage growth expected in FY27. The board believes the current market valuation undervalues the group's intrinsic worth.

Key Performance Indicators:

• GMV Pre Returns: £630.8 million (H1 26) vs. £778.2 million (H1 25) -19%
• Revenue: £296.9 million (H1 26) vs. £385.4 million (H1 25) -23%
• Adjusted EBITDA: £20.0 million (H1 26) vs. £19.0 million (H1 25) +5%
• Inventory: £67.9 million (H1 26) vs. £104.9 million (H1 25) -35%

CEO Dan Finley noted, “Our turnaround is gathering real pace… These results show that our strategy is working.”