British e-commerce group Debenhams Group, also known under the Boohoo brand, reports lower revenue but significantly improved results in the first half of the 2026/2027 financial year.
Revenue fell 3.0 percent to GBP 409.6 million (422.4).
Total gross merchandise value, GMV, before returns increased 1.8 percent to GBP 863.8 million (848.6). Growth accelerated from 0.5 percent in the first quarter to 2.9 percent in the second quarter.
Adjusted EBITDA increased 14.6 percent to GBP 24.0 million (21.0), with an adjusted EBITDA margin of 5.9 percent (5.0).
Reported EBITDA improved to GBP 19.7 million (-3.5). The improvement is partly explained by exceptional costs decreasing to GBP 4.3 million (24.5).
Adjusted EBIT amounted to GBP 10.8 million (-7.7), corresponding to a positive margin of 2.6 percent.
Profit before tax turned to GBP 28.3 million (-17.9). Net profit was GBP 25.8 million (-14.7).
Results were positively affected by an accounting one-off gain of around GBP 40 million related to a US distribution centre. Excluding this effect and the corresponding item in the comparative period, the loss before tax decreased to approximately GBP 12 million (52).
Net debt decreased to GBP 98.5 million (111.1).
CEO Dan Finley highlights that the transformation work is continuing at a rapid pace. Sales growth has returned, the gross margin has improved and the return rate has decreased. He also notes that the company is reporting a positive profit before tax for the first time since August 2021.
After the end of the period, the group completed disposals of assets in Sheffield and the Nasty Gal brand. The transactions are expected to reduce net debt to a negligible level at the end of the financial year.
Debenhams Group reiterates its full-year guidance.
Revenue409.6422.4-3.0%GMV before returns863.8848.6+1.8%GMV after returns619.5597.3+3.7%Gross margin54.1%51.9%+2.2 ppAdjusted EBITDA24.021.0+14.6%Adjusted EBITDA margin5.9%5.0%+0.9 ppReported EBITDA19.7-3.5+23.2Adjusted EBIT10.8-7.7+18.5Adjusted EBIT margin2.6%––Profit before tax28.3-17.9+46.2Net profit25.8-14.7+40.5Adjusted profit after tax-2.1-13.9+11.8Adjusted earnings per share, pence-0.13-1.04+0.91Net debt98.5111.1-11.4%
