Debenhams Group, the trading name of AIM-listed boohoo group plc, reported a statutory profit before tax of £28.3m for the six months to 31 August 2026, compared with a loss of £17.9m a year earlier. The group says it is its first positive profit before tax since August 2021.
However, the result includes a £40.6m non-cash credit on the sublease of its US distribution centre. Without it, the group would have made a loss before tax of about £12.3m. The prior-year period also included a non-cash lease credit, of £34.3m, relating to Daventry.
Revenue fell 3.0 per cent to £409.6m, while gross merchandise value (GMV) before returns rose 1.8 per cent to £863.8m. The group recognises only its commission as revenue on marketplace sales, which rose to a record 38.9 per cent of GMV from 32.7 per cent. Gross margin improved to 54.1 per cent from 51.9 per cent, and the returns rate fell to 28.3 per cent from 29.6 per cent. Adjusted EBITDA rose to £24.0m from £21.0m.
By brand, Debenhams GMV grew 14.1 per cent and PrettyLittleThing and boohoo together grew 1.1 per cent, while Karen Millen fell 4.8 per cent and MAN fell 28.0 per cent.
Net debt was £98.5m at 31 August, up from £93.2m at the end of February. After the period end, the group sold the automation in its Sheffield distribution centre, and assigned the lease, to Primark for £90m, and sold Nasty Gal for $16m (£11.9m). It expects net debt to be negligible by the year end. GXO will take over fulfilment, moving it from Sheffield to the group’s Burnley site after peak.
For the full year, the group expects adjusted EBITDA of at least £59m and a positive profit before tax.
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