boohoo group (DEBS) H2 2025 earnings summary

Executive summary

• FY 2025 marked substantial change with new leadership, aggressive cost actions delivering GBP 50 million in annualized savings, and a 50% reduction in stock holding and CapEx.

• The Debenhams brand achieved a 34% year-on-year GMV increase to GBP 654 million and GBP 25 million Adjusted EBITDA.

• The group is pivoting to a marketplace-led, capital-light model, with a successful equity raise and significant deleveraging.

• The group is exploring the sale of PLT as part of its ongoing business review.

Financial highlights

• Adjusted EBITDA for FY 2025 was GBP 41.6 million, up 3% year-on-year, with margin improving to 5.3%.

• Revenue declined 12% year-on-year to GBP 790.3 million, reflecting the shift to a marketplace model.

• Inventory reduced by 65% year-on-year to GBP 72.2 million; CapEx down 58% to GBP 27.5 million.

• Net debt ended at GBP 78.2 million, 18% below last year.

• Statutory loss before tax widened to GBP 263.9 million from GBP 164.5 million.

Outlook and guidance

• H1 FY 2026 Adjusted EBITDA for continuing operations expected to be ahead of H1 last year.

• All brands now trading profitably, with focus on right-sizing youth brands for cash generation and profitability.

• Medium-term outlook is for strong, profitable growth, especially in Debenhams.