Debenhams Group (previously identified as Boohoo Group) has reported a pointy enchancment in profitability within the six months to 31 August 2025, as its multi-yr turnaround continues to collect tempo and its marketplace pivot begins to ship.
The Group, which now positions itself as a “lean, tech-enabled online platform” spanning Debenhams, Karen Millen, Boohoo, PLT and BoohooMAN, delivered adjusted EBITDA of £20 million for the interval, up 5% yr on yr. Adjusted EBIT returned to optimistic territory at £1.8 million, whereas statutory losses narrowed dramatically to £3.4 million from £126.7 million final yr.
CEO Dan Finley stated: “Our turnaround is gathering 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 grown adjusted EBITDA. These results show that our strategy is working.”
Debenhams, acquired from administration almost 5 years in the past, stays the engine of the turnaround. GMV grew 20% to £318.8 million, whereas adjusted EBITDA rose 50% with margins round 15%. The firm now counts round 20,000 marketplace companions, double the quantity it had a yr in the past, and expects the Debenhams model alone to attain £1 billion GMV and greater than £50 million EBITDA inside three years.
The marketplace mannequin, which the Group describes as “stock-lite, capital-lite, margin rich and highly cash generative”, now accounts for 32% of general GMV, up from 19% a yr in the past. All 5 Group manufacturers at the moment are marketplace enabled.
Significant value reductions have underpinned the development. Fixed prices have been lower by round £160 million since February 2024, with the Group now focusing on a £100 million fastened value base within the close to time period. Investment in its automated Sheffield distribution centre will permit the enterprise to exit its Daventry website and promote its Burnley freehold, whereas US distribution centre obligations can even be exited.
Looking forward, full-yr EBITDA is anticipated to attain roughly £45 million, with double-digit EBITDA progress forecast for FY27.
Finley added: “We are transforming into a best-in-class online platform business. The momentum we have built in the first half sets us up well for the remainder of the year.”