Boohoo Group/Debenhams released its half-year results to the end of August on Thursday, offering its most encouraging update in several years.

The company said its “turnaround continues apace,” with a “return to profitability across all brands,” marking a significant shift for a business that once dominated UK online fashion but struggled heavily after the post-pandemic slowdown.

The Debenhams brand — acquired earlier this decade — remained a standout performer. In H1, general merchandise value (GMV) rose 20%, while EBITDA increased 50%, reinforcing the strategic value of the marketplace model.

However, the broader group picture was mixed. Boohoo is still loss-making overall, and key metrics declined across several brands.

Total GMV before returns fell 19% to £630.8 million. Youth Brands dropped 41% to £258 million, while Karen Millen slipped 31% to £54 million. Debenhams offset part of that decline with its 20% jump to £318.8 million.

GMV after returns declined 23% to £406.9 million, and revenue also fell 23% to £296.9 million. Gross profit decreased 24% to £157.2 million, with margin edging down to 52.9% from 53.5%.

The company noted that the revenue drop reflects a higher mix of marketplace sales, where only commission is recorded as income.

On the positive side, operating costs were reduced by 27%, contributing to a 5% increase in adjusted EBITDA, which reached £20 million.

While statutory losses persisted, they narrowed significantly. Loss after tax fell from £126.7 million to just £3.4 million — a 97% improvement. Net debt also reduced to £111 million from £143 million.

Looking ahead, Boohoo expects FY26 EBITDA of around £45 million, with a double-digit percentage increase forecast for FY27.

Renewed Confidence

The group is clearly more optimistic than it has been in previous years. It said its current market valuation “is well below intrinsic value” and plans to resume investor roadshows. Investors responded quickly: Boohoo’s share price surged more than 20% in early Thursday trading.

The company also plans to resolve the long-running naming issue. Although it trades publicly as Boohoo Group, its main operating identity is Debenhams. Previous attempts to rename the company were blocked by major shareholder Frasers Group, but Boohoo says it will “formally change the name… as soon as all major shareholders agree.”

Marketplace Momentum

Detailing the last six months, Boohoo said the marketplace model “is at the heart of our go-forward business.” Described as stock-light, capital-light, margin-rich, and cash-generative, the model is expected to strengthen further with AI-driven efficiencies.

The group now hosts around 20,000 partners — twice as many as last year — and sees significant additional growth potential. All group brands are fully marketplace-enabled through its proprietary technology.

As Boohoo approaches five years since acquiring Debenhams, it says it is on track to reach its medium-term ambition: multi-billion-pound GMV with margins around 20%. It also expects the Debenhams brand alone to hit £1 billion GMV and over £50 million EBITDA within three years.

Marketplace sales now account for 32% of GMV, up from 19% in H1 last year, enabling a sharp reduction in stock-holding.

Debenhams Driving Growth

Debenhams remains the strongest performer in the group, expanding internationally with marketplace platforms now live in Ireland, Australia, and the US.

In September, key group brands — including Coast, Warehouse, Oasis, Nasty Gal, and Karen Millen — launched on Macy’s, Bloomingdale’s, and Nordstrom’s online marketplaces. With more than 350 million monthly shoppers combined, this marks a major step into the US.

A new partnership with Amazon Fashion US will also bring Nasty Gal to over 250 million Amazon customers.

While the numbers show continued weakness across Youth Brands, Boohoo says a multi-year transformation is well under way. All Youth Brands are now profitable on an adjusted EBITDA basis, with Boohoo, PrettyLittleThing, and MAN each running their own marketplaces.

The company said its focus is on “profit and cash generation whilst revenue right-sizes” across its globally recognised brands, which collectively have more than 46.5 million social media followers. GMV declines have also improved each quarter this year.

At Karen Millen, a new leadership team is driving a refreshed product strategy aimed at strengthening brand identity and building a premium global lifestyle offering. Boohoo also sees major licensing potential across footwear, accessories, home, and beauty.

Group CEO Dan Finley said:
“Our turnaround is gathering real pace. 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.

“This is a multi-year journey. We have the right plan, the right model, and the momentum to deliver for the remainder of FY26. We expect adjusted EBITDA to be ahead of last year.”