Debenhams Group Reports Accelerating Growth as Marketplace Mix Hits Record High

Debenhams Group (formerly boohoo group plc) (LON: DEBS) reported accelerating growth in a trading update for the six months to 31 August 2026, with adjusted EBITDA up 13.9% and reported EBITDA up 731%.

Group GMV rose 1.8% year on year, with growth improving from 0.5% in the first quarter to 2.9% in the second. The Debenhams brand was the standout performer, with GMV up 14.1% to represent around 41% of Group GMV. Pretty Little Thing, boohoo and Karen Millen all returned to growth during the period.

Marketplace mix reached a record 38.9% of Group GMV, up from 32.7% a year earlier, with roughly 30,000 brands and partners now on the platform. Gross margin expanded to 53.9% from 51.9%, while the returns rate fell by around 4%.

Adjusted EBITDA rose to £24m from £21m, with margin improving to 5.9%. Exceptional costs fell 83.5% to £4m, driving reported EBITDA of £20m, a £23m improvement on the prior year. Net debt reduced to £102m, down £9m year on year.

Since the period end, the Group completed the £90m disposal of its Sheffield automation and lease assets, moving fulfilment to a global third-party logistics provider, and sold the Nasty Gal brand for $16m. Both deals are expected to leave net debt “negligible” by the February 2027 year end.

Chief executive Dan Finley said the turnaround was continuing “at pace,” with the company reiterating guidance for double-digit adjusted EBITDA growth and positive free cash flow in FY27.