The Debenhams brand has posted a 20 per cent rise in gross merchandise value (GMV) and a 50 per cent jump in EBITDA for the six months ended August 31, 2025, versus the second half (H1) of fiscal 2025 (FY25).
With margins now at around 15 per cent, management said it has clear line of sight to Debenhams reaching £1 billion (~$1.32 billion) GMV and £50 million (~$66.20 million) plus EBITDA within three years.
A key driver of the turnaround is the marketplace model, which management described as stock lite, capital lite, margin rich and highly cash generative. The Group now has around 20,000 partners—double last year’s number—and all brands are operating on its proprietary marketplace technology.
Marketplace contribution rose to 32 per cent of GMV, up from 19 per cent in H1 FY25.
The youth brands division—Boohoo, PLT and MAN—is also back in positive adjusted EBITDA territory, with marketplace rollouts underway and GMV declines steadily easing throughout the first three quarters, the company said in a financial release.
Karen Millen is entering a new growth phase with a refreshed leadership team and a premium positioning strategy. The company sees material global licensing potential spanning footwear, accessories, home and beauty categories.
“We have returned all our brands to profitability and grown adjusted EBITDA. These results show that our strategy is working. We built this turnaround on three clear pillars: creating the right operating model, supercharging Debenhams, and pivoting our other brands into fashion-led marketplaces. We have simplified, we have focused, we are staying disciplined in how we execute, and we know there is more to do,” Dan Finley, group chief executive officer, said.
Cost restructuring remains a central pillar of the turnaround. Fixed costs have been sharply reduced by around £160 million, falling from £292 million in February 2024, and are expected to reach approximately £100 million in the near term.
The Group said warehousing consolidation will complete this year, with £125 million of automation at the Sheffield distribution centre set to be fully utilised. The company has exited its Daventry facility, is preparing to sell its freehold Burnley site, and will exit US distribution obligations.
Adjusted EBITDA for H1 FY26 reached £20 million, up 5 per cent year on year for continuing operations and £21 million for total operations (up 1 per cent). The Group returned to positive Adjusted EBIT at £1.8 million and reduced statutory loss after tax sharply to £3.4 million from £126.7 million a year ago.
Net debt decreased to £111 million from £143 million at the same point last year. The company expects to reduce net debt-to-EBITDA to below 2x by the end of FY27 and below 1x the following year.
Full-year EBITDA for total operations is projected to be about £45 million, with double-digit growth targeted in FY27. The Group also confirmed it intends to formally rename Boohoo Group Plc as Debenhams Plc once all major shareholders agree.
“This is a multi-year journey, and we have a clear plan and the right model in place. We are transforming into a lean, tech-enabled, best in class online platform business. The momentum we have 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,” Finley added.
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