**Summary of Boohoo Group Plc Half-Year Report (H1 2026)**
**Overview**
Boohoo Group Plc (now operating as Debenhams Group) reported its half-year results for the six months ended 31 August 2025, highlighting significant progress in its strategic turnaround. The Group is transitioning to a marketplace model, focusing on profitability, and reducing costs across all brands, including Debenhams, Karen Millen, and its Youth Brands (Boohoo, PLT, MAN).
**Key Highlights**
1. **Turnaround Progress**
All brands are now profitable on an Adjusted EBITDA basis.
Debenhams brand GMV grew by 20% to £318.8 million, with EBITDA up 50% to £50 million (c.15% margin).
Youth Brands GMV declined by 41% to £258 million due to rationalization, but profitability improved.
2. **Marketplace Model**
32% of GMV now comes from the marketplace (up from 19% in H1 2025), enabling a stock-lite, capital-lite, and cash-generative model.
Over 20,000 partners in the ecosystem (up from 10,000 a year ago), with all brands marketplace-enabled.
3. **Cost Reduction**
Fixed costs reduced by £160 million to £100 million.
Inventory down 35% to £68 million, and Capex reduced by 50% to £7.5 million.
4. **Financial Performance**
Adjusted EBITDA increased by 5% to £20 million.
Statutory loss after tax significantly reduced to £3.4 million (from £126.7 million in H1 2025).
Net debt decreased to £111 million (from £143 million in H1 2025).
5. **Strategic Initiatives**
Consolidation of warehousing operations, including exiting Daventry and selling Burnley DC.
New leadership at Karen Millen to reposition it as a premium global lifestyle brand.
Expansion of Debenhams marketplaces internationally (Ireland, Australia, US) and partnerships with Macys, Bloomingdales, and Nordstrom.
6. **Future Outlook**
Full-year EBITDA expected to be approximately £45 million, with double-digit growth in FY27.
Net debt/EBITDA ratio expected to reduce to <2x by FY27 and <1x by FY28.
Formal name change to Debenhams Plc pending shareholder approval.
**Management Commentary**
CEO Dan Finley emphasized the Groups turnaround momentum, driven by a focus on the right operating model, supercharging Debenhams, and pivoting Youth Brands to fashion-led marketplaces. The Group aims to become a lean, tech-enabled, best-in-class online platform business.
**Conclusion**
Boohoo Group Plc (Debenhams Group) is making strong progress in its multi-year turnaround strategy, with improved profitability, reduced costs, and a shift to a sustainable marketplace model. The Group remains focused on delivering long-term value for shareholders.
| Metric | H1 2026 (£ million) | H1 2025 (£ million) | Change |
|---|---|---|---|
| GMV Pre Returns | 630.8 | 778.2 | -19% |
| Revenue | 296.9 | 385.4 | -23% |
| Gross Profit | 157.2 | 206.2 | -24% |
| Adjusted EBITDA | 20.0 | 19.0 | +5% |
| Adjusted EBIT | 1.8 | (9.2) | +119.3% |
| Statutory Loss after tax | (3.4) | (126.7) | -97% |
| Inventory | 67.9 | 104.9 | -35% |
| Capex | (7.5) | (14.9) | -50% |
| Net debt | (111.1) | (143.1) | -22% |
| Marketplace Mix (% of GMV) | 31.6% | 19.0% | +1260bps |