Debenhams Group Shares Fall Despite Turnaround Progress in Full-Year Results

Shares in Debenhams Group (LON: DEBS) — formerly Boohoo — fell on Tuesday after the online fashion retailer published its audited full-year results, with investors appearing to focus on the group’s persistent losses and top-line revenue decline despite encouraging operational milestones.

DEBS stock opened at 26p before slipping to a low of 24p, against a previous close of 25p — a decline of around 4% — as the market digested a mixed set of numbers for the year ended 28 February 2026.

The Positives

On the positive side, the group reported Adjusted EBITDA of £53.3 million, up 34.6% year-on-year and ahead of two trading upgrades issued during the period. Chief Executive Dan Finley hailed “a year of significant and successful transformation,” pointing to the turnaround of PrettyLittleThing — which swung from a £1 million adjusted EBITDA loss to a £14 million profit — and continued momentum at the Debenhams brand, whose GMV rose 11.6% to £730 million.

The group also highlighted landmark operational achievements: consolidation of all warehouse operations into Sheffield delivering £33 million in recurring savings, migration to a single AI-powered technology platform saving £38 million annually, and the renegotiation of over 150 contracts for a further £35 million in savings. The statutory loss after tax also narrowed sharply, falling by £218 million year-on-year to £108.3 million.

The Concerns

However, several figures are likely to have given investors pause. Group GMV fell 21.6% to £1.82 billion as management deliberately shifted focus towards higher-margin marketplace sales, while revenue dropped 24.7% to £917 million. Free cash flow remained negative at £18.4 million and net debt edged higher from £78.2 million to £93.2 million, representing leverage of 1.75x Adjusted EBITDA.

Outlook

The apparent “sell-the-news” reaction suggests investors remain cautious despite management’s confident tone. The group guided for double-digit Adjusted EBITDA growth in FY27 and a return to group GMV growth, with Q1 FY27 already showing 0.5% year-on-year expansion and May trading up approximately 8%. Net debt is targeted below 1x Adjusted EBITDA by year end, and FY27 is expected to deliver sustained free cash flow generation.