The British online fast-fashion retailer group’s transformation strategy centres on a marketplace-led operating model, now implemented across all brands, which has contributed to a higher EBITDA margin and reduced stock holdings.
In the six months ended 31 August 2025, the group achieved adjusted EBITDA of £20.0m ($26m) for continuing operations, a 5% increase from the previous year, while statutory loss after tax narrowed to £3.4m from £126.7 in H1 2025.
Debenhams Group CEO Dan Finley 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.”
Overall performance of Debenhams Group in H1 2026
The company’s revenue for continuing operations in H1 2026 was £296.9m, down 23% from £385.4m in the same period last year.
Gross profit from continuing operations dropped by 24% to £157.2m in H1 2026, with gross margin decreasing to 52.9% from 53.5%.
The group’s gross merchandise value (GMV) pre-returns for continuing operations were £630.8m in the first half, down 19% from £778.2m in the same period last year.
The Debenhams brand delivered growth, with GMV rising by 20% year-on-year to £318.8m.
Marketplace sales accounted for 31.6% of GMV in H1 2026, up from 19% a year earlier. This shift has allowed Debenhams Group to reduce inventory levels by 35% and capital expenditure by approximately 50%, reflecting the move to a lighter capital structure.
Fixed costs have been reduced by about £160m since February 2024 to a current run-rate of approximately £132m, with further reductions expected.
Net debt at midyear stood at £111m, down from £143m in H1 2025. The online fast-fashion retailer group projects that net debt to EBITDA will fall below 2x by the end of February 2027, with an eventual target below 1x.
Debenhams Group’s outlook for FY26
Looking ahead, Debenhams Group expects full-year adjusted EBITDA for total operations to reach approximately £45m and forecasts double-digit percentage growth for FY27.
The company intends to formally change its name from Boohoo Group Plc to Debenhams Plc once major shareholders agree.
“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,” Dan Finley added.
In September this year, Debenhams Group announced plans to its popular British fashion labels in the US, with Coast, Warehouse, Oasis, Nasty Gal and Karen Millen now available on Macy’s, Bloomingdale’s and Nordstrom online marketplaces.
