27 November 2025

 

boohoo group plc

(the "Company" or the "Group" or "Debenhams Group")

 

Results for the six months ended 31 August 2025

 

The turnaround continues apace:

 

Progress on strategic transformation and disciplined execution driving a return to profitability across all brands.

 

Highlights - H1 2026

 

The turnaround continues apace:

 

Progress on strategic transformation and disciplined execution driving a return to profitability across all

brands.

 

The Group turnaround is well underway with the Debenhams brand continuing to grow with H126 GMV +20% and EBITDA +50% (compared to H125) with an EBITDA margin of c.15%. 

 

Our marketplace model is at the heart of our go forward business. It is stock lite, capital lite, margin rich and highly cash generative. This will improve further as we continue to grow our take rate and realise the potential of our recent AI investments across the business. 

 

There are now c.20k partners in our ecosystem (up from c.10k a year ago) and we see significant further partner growth potential. All our Group brands are now marketplace enabled, leveraging our proprietary technology ecosystem.

 

As we approach the 5-year anniversary of the acquisition of Debenhams from administration, it is clear that we are making good progress towards realising this medium term £multi-billion GMV opportunity with a c.20% EBITDA margin. We now have clear line of sight to the Debenhams brand delivering £1bn GMV and £50m+ EBITDA within 3 years.

 

The significant multi-year transformation of our Youth Brands is underway. All brands are now profitable on an Adjusted EBITDA basis with Boohoo, PLT and MAN each having started their marketplaces. Our focus is on profit and cash generation whilst revenue right sizes. These globally recognised brands have over 46.5m social media followers. Importantly, the GMV declines have improved quarter on quarter through the first three quarters of the financial year. 

 

We have a new energised leadership team in place at Karen Millen. With a new product strategy designed to strengthen brand identity and deliver sustained commercial performance as it transitions to be a premium global lifestyle destination. We see significant global license opportunities across footwear, accessories, home and beauty.

 

32% of GMV is now generated through marketplace (19% at H125). This is enabling significant stock holding reduction to £68m in H126 (-35% on H125 continuing operations, -50% on H125 total operations), as the stock lite model comes into effect. Similarly, Capex has reduced to £7.5m in H126 (H125: £14.9m, H124: £36.3m) as we transition to capital lite.

 

Consolidation of our warehousing operations is well underway and will complete this financial year. We previously invested £125m in world class automation at our Sheffield distribution centre (DC). This will be fully potentialised going forward with material operational improvements delivered. Our Daventry DC has been exited, our freehold Burnley DC is in the process of being sold and our US DC obligations will be exited. 

 

Our decisive cost elimination programme is nearing completion. We are transforming into a lean, tech-enabled, best in class online platform business.

 

Our ongoing fixed cost base has been reduced by c.£160m (down from £292m at Feb-24). We expect our fixed costs to reach c.£100m in the near term. Significant variable cost reduction has been delivered from material operational improvements. This provides material EBITDA margin expansion opportunity and as we return to growth, the EBITDA growth opportunity is tremendous. 

 

Adjusted EBITDA of £20.0m in H126, 5% ahead of H125 (total operations £21.0m, 1% ahead of H125). Positive Adjusted EBIT of £1.8m (H125:(£9.2)m). Statutory loss after tax for continuing operations significantly reduced to £3.4m (H125: £126.7m).

 

Net debt is down to £111m (H1 25: £143m). We expect net debt / EBITDA to be reduced by the end of the next financial year (28 February 2027) to <2x as the Group returns to cash generation and target <1x the year after. Disposals could bring forward this balance sheet strengthening.

 

We expect full year EBITDA to be approximately £45m, for total operations. This is expected to grow double digits % in FY27. 

 

The board considers the market valuation of the Group to be well below intrinsic value. We will continue to engage with investors to ensure the new Debenhams business model is fully understood and will recommence our investor roadshows.

 

We operate as Debenhams Group. We will formally change the name of Boohoo Group Plc to Debenhams Plc, as we previously tried, as soon as all major shareholders agree, as we believe that is in the best interest of all shareholders.

 

Summary H1 2026 Performance

 

	Group performance of continuing operations
£ million	H1 26	H1 25	Change
GMV Pre Returns(1)	630.8	778.2	-19%
- Youth Brands	258.0	434.4	-41%
- Karen Millen	54.0	78.3	-31%
- Debenhams brand	318.8	265.5	+20%
GMV Post Returns(2)	406.9	529.7	-23%
Revenue	296.9	385.4	-23%
Gross Profit	157.2	206.2	-24%
Gross margin	52.9%	53.5%	-60bps
Operating costs	(137.2)	(187.2)	-27%
Adjusted EBITDA(3)	20.0	19.0	+5%
% of revenue	6.7%	4.9%	180bps
Adjusted EBITDA (total operations(4))	21.0	20.8	+1%
% of revenue	5.0%	3.4%	160bps
Adjusted EBIT(5)	1.8	(9.2)	+119.3%
% of revenue	0.6%	-2.4%	300bps
Statutory Loss after tax	(3.4)	(126.7)	-97%
Statutory Loss after tax (total operations)	(14.7)	(138.9)	-89%
Inventory	67.9	104.9	-35%
Capex	(7.5)	(14.9)	-50%
Free cash flow(6)	(22.1)	(38.9)	-43%
Net debt	(111.1)	(143.1)	-22%
Marketplace Mix(7)	31.6%	19.0%	1260bps

 

^{(1) GMV pre returns is all merchandise sold to customers after cancellations and before returns, including VAT, carriage receipts and premier subscription income.} 

^{(2) GMV post returns is all merchandise sold to customers after cancellations and after returns, including VAT, carriage receipts and premier subscription income.}

^{(3) Adjusted EBITDA is calculated as loss before tax, interest, depreciation, amortisation, share-based payment charges and exceptional items.} 

^{(4) Total operations include both continuing and discontinued operations.}

^{(5) Adjusted EBIT is calculated as loss before tax, interest, amortisation of acquired intangible assets, share-based payment charges and exceptional items.}

^{(6) Free cash flow is defined as Net cash generated from activities, less cash used for capital expenditure for the total group.}

^{(7) GMV pre returns generated from External Marketplace sales divided by total Group GMV pre returns}

 

Dan Finley, Group Chief Executive Officer, said:

 

Our turnaround is gathering real pace. We are making progress, we are moving fast, and we are transforming the business. We have returned all our brands to profitability and grown adjusted EBITDA. These results show that our strategy is working.

 

We built this turnaround on three clear pillars: creating the right operating model, supercharging Debenhams, and pivoting our other brands into fashion-led marketplaces. We have simplified, we have focused, we are staying disciplined in how we execute, and we know there is more to do.

 

Debenhams is leading the way. Its double-digit growth shows what is possible across the wider Group and reinforces that the marketplace model is the right one. Our Youth Brands and Karen Millen are following that lead, now fully marketplace enabled and profitable, with the foundations in place for their next phase of growth.

 

This is a multi-year journey, and we have a clear plan and the right model in place. We are transforming into a lean, tech-enabled, best in class online platform business. The momentum we have built in the first half sets us up well for the remainder of FY26 and we expect Adjusted EBITDA to be ahead of last year.

 

Investor & Analyst presentation and Q&A 

An institutional investor and analyst presentation will be available on the https://www.debenhamsgroup.com/  website here from 7:30am on 27 November 2025.

A Q&A session will be hosted at 9:00am on 27 November 2025 for institutional investors and analysts.  

Enquiries
Debenhams Group
Phil Ellis, Chief Financial Officer		Tel: +44 (0)161 233 2050
Zeus Capital - Nominated Advisor and Joint Broker
Dan Bate/ James Edis		Tel: +44 (0)161 831 1512
Benjamin Robertson		Tel: +44 (0)20 3829 5000
Panmure Liberum - Joint Broker              Mark Dickenson/ James Sinclair-Ford/ Shalin Bhamra Sodali & Co - Financial PR Adviser		Tel: +44 (0)20 3100 2000
Ben Foster/ Louisa Henry		Tel: +44 (0)20 3984 0114 Debenhamsgroup@client.sodali.com

 

 

About Debenhams Group

Debenhams Group is an online platform, for fashion, home, and beauty, serving millions of customers across five shopping destinations: Debenhams, Karen Millen, boohoo, MAN and PLT. Debenhams Group dates back to 1778 when William Clark, a retail pioneer of the time, opened the UK's first department store. Today, the Group is home to Debenhams, Britain's online department store and leading fashion-led marketplaces, boohoo, PLT, MAN, and Karen Millen.

 

 

Strategic update

 

Debenhams Group has embarked on a decisive, multi-year turnaround strategy designed to restore profitability and unlock value for all shareholders. The turnaround continues apace and is making strong progress.

There is still more to be delivered, and we are executing a clear plan. We believe we have made strong progress against our 3 key strategic value drivers:

1.    Creating the right operating model

·    Our ongoing fixed cost base has been reduced by c.£160m (down from £292m at Feb-24).  We expect our fixed costs to reach c.£100m in the near term.

·    Consolidation of our supply chain operations is well underway into our world class automated Sheffield site and will be complete this financial year, delivering c.£20m annualised cost savings.  

·    Our operations have been streamlined and inventory reduced by 35% during the period, reflecting continued progress towards a more efficient, stock-lite, capital-lite, cost-lite operating model.  

2. Supercharging the Debenhams brand

·    The Debenhams brand continues to power ahead, with GMV growing 20% to £318.8m in H126.

·    Adjusted EBITDA at H126 is 50% ahead of last year, delivering a strong EBITDA margin c.15%.

·    The marketplace continues to scale, with c.20k brands now in our ecosystem (up from c.10k a year ago). Latest additions include Jessops, Appliance World Online, Bodum and Brita.

·    We continue to grow our geographical footprint and expand internationally with Debenhams brand marketplaces now live in Ireland, Australia and the US.

·    In September, we have launched a number of our brands, including Coast, Warehouse, Oasis, Nasty Gal and Karen Millen, on Macy's, Bloomingdale's and Nordstrom online marketplace. Attracting over 350 million shoppers each month, this marks significant penetration into the US market for the Group. A new collaboration with Amazon Fashion in the US will bring Nasty Gal to over 250 million shoppers on the Amazon platform.

·    In October we relaunched the much-loved Designers at Debenhams. The AW25 collection launched with Ashish, fronted by actress Kim Cattrall, bringing wearable pieces to the high street and making runway fashion accessible.

3. Pivot to fashion-led marketplaces

·    The significant multi-year transformation of our Youth Brands is underway. Our marketplace model is at the heart of our go forward business. All our Group brands are now marketplace enabled, leveraging our proprietary technology ecosystem.

·    All our brands are now profitable at adjusted EBITDA level. Our focus is on profit and cash generation whilst revenue right sizes. In line with our expectations, GMV declines have significantly improved quarter on quarter through the first three quarters of the financial year. 

·    Driving marketplace-led growth remains central to the turnaround strategy and the Group continues to accelerate its transition to a marketplace model. This strategic shift will position the Group to deliver sustainable, higher-margin growth through a capital-lite, stock-lite, cost-lite and cash generative operating model.

·    We have a new energised leadership team in place at Karen Millen. With a new product strategy designed to strengthen brand identity and deliver sustained commercial performance as it transitions to be a premium global lifestyle destination. We see significant global license opportunities across footwear, accessories, home and beauty.

 

 

Update on sustainability

During the first half of the year, the Group achieved further progress against its 2025 Environmental, Social and Governance priorities. We updated in March on our partnership with Segura, and we're pleased to confirm strong progress, with all suppliers now having been successfully onboarded onto the Segura platform. This is a key step in developing a comprehensive grading of our Tier 1 factories. Our partnership with Pennies grows stronger and the roll-out so far has enabled customers to raise over £120,000 for the British Heart Foundation, with further expansion of this initiative planned across additional brands.

 

Review of the business

Group overview     

The turnaround continues apace. The Group continues to execute its strategic transformation, consolidating its cost base, reducing complexity, focusing on profitable growth and cash generation. H126 results demonstrate that the turnaround is progressing apace.

Adjusted EBITDA increased to £20.0m (H125: £19.0m), total operations £21.0m (H125: £20.8m). Adjusted EBITDA margin increased 180bps against last year supported by cost out actions and the shift to marketplace. Adjusted EBIT improved to £1.8m (H125: £(9.2)m).  Statutory losses significantly reduced to £3.4m (H125: £126.7m).

 

GMV Pre Returns for continuing operations was £630.8m, down 19% year on year, largely due to the reduction in Youth Brand sales. The significant transformation within the Youth Brands is underway, with focus on profit and cash generation.  All brands are now profitable. Importantly, GMV declines have significantly improved quarter on quarter through the first three quarters of the financial year. 

 

The Debenhams brand continues to power ahead, with GMV growing 20% to £318.8m in H126. Adjusted EBITDA at H126 is 50% ahead of last year, delivering a strong EBITDA margin c.15%.

Revenue was £296.9m, down 23%, consistent with the increasing mix of marketplace activity where only commission income is recognised.

Gross margin remained broadly stable at 52.9%, reflecting the shift in sales mix toward marketplace. Operating costs were reduced by 27%, highlighting the success of the Group's ongoing cost-reduction programme.

Exceptional costs before tax were £15.3m in H126 in comparison to £(101.5)m in H125. In H126 Exceptional costs for continuing operations consisted of:

·    £34.3m Lease-write back right of use assets relating to the lease reassignment of Daventry distribution centre;

·    £(13.6)m costs in relation to restructuring and dual operating costs relating to the consolidation of our distribution centres and the closure of our Burnley distribution centre;

·    £(3.1)m restructuring costs;

·    £(1.0)m costs relating to the consolidation of properties;

·    £(1.0)m technology platform dual running costs relating to the cost of migrating brands to our proprietary marketplace technology platform; and

·    £(0.3)m professional fees.

Further information in relation to Exceptional costs can be found in Note 1.

Group remains focused on driving efficiency and cash generation, with clear progress made on cost optimisation, improved working capital management, and the continued pivot to its marketplace model.

Cash and Working Capital Management

The Group delivered strong progress in working capital management during H126, reflecting the continued focus on cash generation, operational discipline, and a stock-lite, capital-lite model.

Operating cash outflow was £14.7m (H125: £24.0m outflow), driven by lower trading volumes offset by a material reduction in costs and inventory. 32% of GMV is now generated through marketplace (19% LY). This is enabling significant stock holding reduction to £68m in H126 (-35% on H125 continuing operations, -50% on H125 total operations), as the stock lite model comes into effect.

Similarly, capex has reduced to £7.5m in H126 (H125: £14.9m, H124: £36.3m) as we transition to capital lite. Free cash outflow after tax improved to £12.6m (H125: £38.9m outflow), reflecting the lower capex and efficiency gains.

Net debt improved to £111.1m (H125: £143.1m). In August 2025, the Group announced the completion of a new 3-year facility providing access to funding of up to £175 million, which extends maturity to August 2028. This replaces the Group's previous £125 million revolving credit facility originally due to mature in October 2026. As a result of the decisive actions taken by the new management team Interest bearing loans and borrowings decreased from £275.0m as at H125 to £141.4 as at H126, a 48.6% reduction.

Performance by market

Debenhams
Debenhams continues to provide the blueprint for the wider Group's transformation, delivering 20% GMV growth to £318.8m (H125: £265.5m). Acceleration of the marketplace proposition, supported by growth in its Beauty channel continue to propel the Debenhams GMV growth.

Profitability is strong, Adjusted EBITDA +50% ahead of last year, delivering a strong EBITDA margin of c.15%.

Youth Brands
Youth Brands GMV decreased 41% to £258.0m (H125: £434.4m), reflecting the rationalisation of unprofitable lines, unprofitable customers and continued softness in the youth fashion segment. These globally recognised brands have over 46.5m social media followers. The focus remains on sustainable, profitable growth and cash generation, leveraging the Group's proprietary marketplace technology platform.

All brands are now profitable, on an Adjusted EBITDA basis. Importantly, GMV declines have significantly improved quarter on quarter through the first three quarters of the financial year. 

PLT remains as an asset held for sale. The board believes a strategic sale is an opportunity to maximise shareholder value.

Karen Millen

Karen Millen GMV declined 31% to £54.0m (H125: £78.0m). The brand continues to deliver strong H1 26 margin performance through disciplined inventory management and selective investment in licensing and third-party partnerships, which support a capital-lite growth model. The brand continues to be profitable, on an Adjusted EBITDA basis.

Importantly, GMV declines have significantly improved quarter on quarter through the first three quarters of the financial year. 

New leadership team in place at Karen Millen as it transitions to premium global lifestyle destination.

 

 

 

FINANCIAL REVIEW

 

Consolidated summary income statement for continuing operations

 

	6 months to 31 August 2025	6 months to 31 August 2024	Change HY26 on HY25
	£ million	£ million
GMV Pre Returns	630.8	778.2	(19%)
Revenue	296.9	385.4	(23%)
Cost of sales	(139.7)	(179.2)	(22%)
Gross profit for continuing operations	157.2	206.2	(24%)
Gross margin %	52.9%	53.5%	(60bps)
Operating costs	(137.5)	(187.9)	(27%)
Other income	0.3	0.7
Adjusted EBITDA for continuing operations	20.0	19.0	5%
Adjusted EBITDA margin %	6.7%	4.9%	180bps
Depreciation	(9.6)	(16.3)
Amortisation of other intangible assets	(8.6)	(11.9)
Adjusted EBIT for continuing operations	1.8	(9.2)	(20%)
Adjusting items:
Amortisation of acquired intangible assets	(3.3)	(3.4)
Equity-settled share-based payments charges	(7.2)	(6.3)
Exceptional items and impairments	15.3	(101.5)
Operating profit / (loss) for continuing operations	6.6	(120.4)	(5%)
Finance income	3.1	2.6
Finance expense	(12.2)	(12.2)
Loss before tax for continuing operations	(2.5)	(130.0)	(98%)
Taxation	(0.9)	3.3
Loss after tax for continuing operations	(3.4)	(126.7)	(97%)
Share of results of associates	-	-
Loss for the period for continuing operations	(3.4)	(126.7)	(97%)
Loss per share for continuing operations	(0.51)p	(1.49)p	(97%)
Adjusted loss after tax for the period for continuing operations	(7.0)	(17.9)	(61%)
Amortisation of acquired intangible assets	(3.3)	(3.4)
Equity-settled share-based payments charges	(7.2)	(6.3)
Impairment of assets	-	(93.3)
Exceptional costs	15.3	(8.2)
Adjustment for tax	(1.2)	2.4
Loss after tax for the period for continuing operations	(3.4)	(126.7)	(97%)
Adjusted diluted per loss per share	(0.48)p	(1.39)p	(11%)

(Exceptional items and impairment of assets amounted to (£15.3)m (H125: 101.5m) and are shown in more detail in note 1 of the financial statements.  These items relate to:

 

·    Restructuring and closure costs associated with the closure of a warehouse facility in the UK.

·    Daventry Assignment and associated on going costs

·    Dual technology platform running costs associated with re-platform

·    Cost associated with Strategic change announced on 18th October 2024, following the appointment of Dan Finley, including redundancy costs associated with the groups cost reduction programme, exceptional jobbing off as shifted commercial proposition to move to a marketplace driven model.

Exceptional costs relating to the treatment of PLT as an asset held for sale under IFRS 5 were also incurred during the period and are disclosed in more detail in note 1 of the financial statements:

 

 

 

Consolidated statement of financial position

	6 months to 31 August 2025	6 months to 31 August 2024
	£ million	£ million
Intangible assets	61.7	97.0
Property, plant and equipment	181.7	304.4
Right-of-use assets	16.3	12.7
Equity investments	-	0.3
Investments in associates	9.3	29.6
Deferred tax asset	64.2	39.1
Non-current assets	333.2	483.1
Working capital	(126.8)	(62.9)
Lease liabilities	(75.8)	(114.4)
Net financial assets/(liabilities)	0.1	1.6
Cash and cash equivalents	30.3	131.9
Interest bearing loans and borrowings	(141.4)	(275.0)
Deferred tax liability	(19.7)	(16.0)
Current tax asset/(liability)	0.2	-
Net assets	0.1	148.3

 

 

Liquidity and financial resources

Operating cash outflow was £14.6m (H125: £24.0m outflow). Net cash outflow was £14.4m (H125: £98.1m outflow), following Capex of £7.5m (H125: £14.9m).

In August 2025, the Group announced the completion of a new 3-year facility providing access to funding of up to £175 million. The new facility, which extends maturity to August 2028, replaces the Group's previous £125 million revolving credit facility originally due to mature in October 2026.  The new facility, executed by the new management team more than 12 months ahead of the original maturity date, provides significantly enhanced financial flexibility, enabling the Group to deliver its new multi-year Turnaround Strategy. 

Net debt as at H1 26 was £111.1m reducing by 22% in comparison to H125, £143.1m.

 

 

Consolidated cash flow statement
	6 months to 31 August 2025	6 months to 31 August 2024
	£ million	£ million
Loss for the period	(14.7)	(138.9)
Share-based payments charge	7.6	7.3
Depreciation charges, amortisation and impairment	31.5	136.3
Loss on sale of property, plant and equipment	0.6	0.5
Reclassification to profit or loss of discontinued hedge contracts	-	(0.4)
Lease liabilities de-recognition	(35.4)	-
Foreign Exchange movements	3.2	(1.2)
Finance income	(3.2)	(3.2)
Finance expense	12.3	12.3
Tax expense	(3.2)	(8.4)
Decrease in inventories	8.5	38.1
Decrease / (increase) in trade and other receivables	4.3	(6.4)
Decrease in trade and other payables	(26.1)	(60.0)
Operating cash (outflow)/inflow	(14.6)	(24.0)
Capital expenditure and intangible asset purchases	(7.5)	(14.9)
Proceeds from the sale of property, plant and equipment	9.1	3.5
Tax refunded	0.4	3.3
Free cash outflow after tax	(12.6)	(32.1)
Finance income received	1.1	3.4
Finance expense paid	(12.3)	(12.9)
Lease payments	(9.1)	(6.5)
Drawdown/repayment) of borrowings	18.5	(50.0)
Net cash outflow	(14.4)	(98.1)
Cash and cash equivalents at beginning of period	44.7	230.0
Cash and cash equivalents at end of period	30.3	131.9

 

Unaudited consolidated statement of comprehensive income

for the period ended 31 August 2025

 

	Note	Continuing 6 months to 31 August 2025 Pre Exceptional items	Continuing 6 months to 31 August 2025  Exceptional items	Continuing 6 months to 31 August 2025  Total	Continuing 6 months to 31 August 2024 Pre Exceptional items	Continuing 6 months to 31 August 2024  Exceptional items	Continuing 6 months to 31 August 2024  Total
		(unaudited)	(unaudited)	(unaudited)	(unaudited)	(unaudited)	(unaudited)
		£ million	£ million	£ million	£ million	£ million	£ million
Revenue	3	296.9		296.9	385.4		385.4
Cost of sales		(139.7)		(139.7)	(179.2)		(179.2)
Gross profit		157.2		157.2	206.2		206.2
Distribution costs		(37.4)	19.3	(18.1)	(83.3)	(96.0)	(179.3)
Administrative expenses		(125.4)	(4.1)	(129.5)	(139.4)	(5.2)	(144.6)
Amortisation of acquired intangibles		(3.3)		(3.3)	(3.4)		(3.4)
Other administrative expenses		(122.1)	(4.1)	(126.2)	(136.0)	(5.2)	(141.2)
Other income		0.3		0.3	0.7		0.7
Operating (loss)/profit		(8.6)	15.2	6.6	(19.2)	(101.2)	(120.4)
Finance income		3.1		3.1	2.6		2.6
Finance expense		(12.2)		(12.2)	(12.2)		(12.2)
(Loss)/profit before tax	4	(17.7)	15.2	(2.5)	(28.8)	(101.2)	(130.0)
Taxation		(0.9)		(0.9)	3.3		3.3
(Loss)/profit after tax		(18.6)	15.2	(3.4)	(25.5)	(101.2)	(126.7)
Share of results of associates	9	-				-	-
Loss for the period		(18.6)	15.2	(3.4)	(25.5)	(101.2)	(126.7)
Loss from discontinued operations				(11.3)			(12.2)
Total Loss for the period				(14.7)			(138.9)
Other comprehensive (expense)/income for the period
(Gain)/loss reclassified to profit or loss during the period (1)							(0.9)
Fair value gain/(loss) on cash flow hedges during the period (1)				(0.1)			(0.2)
Income tax relating to these items				0.3			0.3
Total comprehensive loss for the period				(14.5)			(139.7)

 

 

1.        Net fair value gains/losses on cash flow hedges will be reclassified to profit or loss during the two years to 31 August 2026.