boohoo group (DEBS) H1 2026 earnings summary

Executive summary

• Turnaround strategy and disciplined execution have returned all brands to profitability, with Debenhams leading growth and margin expansion.

• The marketplace model is central, now representing 32% of GMV, enabling a stock-lite, capital-lite, and margin-rich business.

• The partner ecosystem has doubled to over 20,000 in a year, and all group brands are now marketplace enabled.

• Significant operational improvements and cost reductions have been achieved, including a 70% reduction in headcount and £160m in fixed cost savings.

• The group is pivoting to fashion-led marketplaces and expects further cost reductions to support EBITDA margin expansion.

Financial highlights

• Adjusted EBITDA up £20 million (+5%) year-over-year to £20.0m; margin at 6.7%, up 180 bps.

• Loss before tax reduced to £3 million, down 97% year-over-year; statutory loss after tax reduced to £3.4m from £126.7m.

• Net debt down 22% to £111 million.

• CapEx halved to £7.5 million, down 50% year-over-year.

• Inventory reduced by 35% to £67.9m.

Outlook and guidance

• Clear line of sight to £1 billion GMV and at least £50 million EBITDA within three years.

• FY 2026 adjusted EBITDA expected at £45 million; double-digit growth expected in FY 2027.

• Net debt/EBITDA expected to fall below 2x by February 2027 and below 1x the following year.

• The board plans to rebrand as Debenhams Plc, believing market valuation is below intrinsic value.