Debenhams Group reports earnings growth and turnaround progress

Debenhams Group, formerly known as Boohoo, reported an acceleration in growth for the first half of its financial year ending August 31. Adjusted underlying earnings rose 13.9% to £24 million, while reported earnings improved to £20 million from a previous £3 million loss.

The group’s turnaround is being driven largely by the Debenhams brand, which saw gross merchandise value (GMV) increase by 14.1%, accounting for approximately 41% of the total group volume. Other labels, including Boohoo, PrettyLittleThing, and Karen Millen, also returned to growth. Total group GMV grew by 1.8%, with growth accelerating from 0.5% in the first quarter to 2.9% in the second.

A central component of the company’s strategy is the transition to an asset-light marketplace model. Marketplace sales reached a record 38.9% of group GMV, up from 32.7% the previous year, with a long-term goal of exceeding 50%.

Financial stability has improved through cost reductions and asset sales, including the £90 million sale of a Sheffield warehouse and the $16 million sale of the Nasty Gal brand. Net debt fell to £102 million, and the company expects debt to be negligible by the end of the 2027 financial year. The board has maintained its full-year guidance of at least £59 million in adjusted earnings.