The British online fast fashion retail group’s transformation strategy focuses on a market-led operating model, now implemented across all brands, which has contributed to higher EBITDA margin and reduced share holdings.
In the six months ended August 31, 2025, the group achieved adjusted EBITDA of £20.0 million ($26 million) from continuing operations, an increase of 5% on the previous year, while the statutory loss after tax narrowed to £3.4 million from £126.7 in the first half of 2025.
Debenhams Group chief executive Dan Finley said: “Our turnaround is gaining 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 increased adjusted EBITDA. These results show our strategy is working.”
Overall performance of the Debenhams Group in the first half of 2026
The company’s revenue from continuing operations in the first half of 2026 was £296.9 million, down 23% from £385.4 million in the same period last year.
Gross profit from continuing operations fell 24% to £157.2m in the first half of 2026, and gross margin fell from 53.5% to 52.9%.
The group’s previous gross merchandise value (GMV) 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 achieved growth, with GMV increasing 20% year-on-year to £318.8m.
Marketplace sales represented 31.6% of GMV in the first half of 2026, up from 19% a year earlier. This change has enabled 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 around £160m from February 2024 to a current run rate of around £132m, with further reductions expected.
Net debt at mid-year stood at £111m, down from £143m in the first half of 2025. The online fast fashion retail group projects net debt to EBITDA will fall below double by the end of February 2027, with an ultimate target of below 1x.
Debenhams Group Outlook for FY26
Looking ahead, Debenhams Group expects full-year adjusted EBITDA for total operations to reach approximately £45 million 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’ve 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,” added Dan Finley.
In September this year, Debenhams Group announced plans for its popular British fashion brands in the US, with Coast, Warehouse, Oasis, Nasty Gal and Karen Millen now available on Macy’s, Bloomingdale’s and Nordstrom online marketplaces.