Debenhams Group turnaround delivers return to profitability in H1 2026

The British online fast-fashion retailer group’s translation strategy centres connected a marketplace-led operating model, present implemented crossed each brands, which has contributed to a higher EBITDA borderline and reduced banal holdings.

In the six months ended 31 August 2025, the radical achieved adjusted EBITDA of £20.0m ($26m) for continuing operations, a 5% summation from the erstwhile year, portion statutory nonaccomplishment aft taxation narrowed to £3.4m from £126.7 successful H1 2025.

Debenhams Group CEO Dan Finley said: “Our turnaround is gathering existent pace. We are making progress, we are moving fast, and we are transforming the business. We person returned each our brands to profitability and grown adjusted EBITDA. These results amusement that our strategy is working.”

Overall show of Debenhams Group successful H1 2026

The company’s gross for continuing operations successful H1 2026 was £296.9m, down 23% from £385.4m successful the aforesaid play past year.

Gross nett from continuing operations dropped by 24% to £157.2m successful H1 2026, with gross borderline decreasing to 52.9% from 53.5%.

The group’s gross merchandise worth (GMV) pre-returns for continuing operations were £630.8m successful the archetypal half, down 19% from £778.2m successful the aforesaid play past year.

The Debenhams marque delivered growth, with GMV rising by 20% year-on-year to £318.8m.

Marketplace income accounted for 31.6% of GMV successful H1 2026, up from 19% a twelvemonth earlier. This displacement has allowed Debenhams Group to trim inventory levels by 35% and superior expenditure by astir 50%, reflecting the determination to a lighter superior structure.

Fixed costs person been reduced by astir £160m since February 2024 to a existent run-rate of astir £132m, with further reductions expected.

Net indebtedness astatine midyear stood astatine £111m, down from £143m successful H1 2025. The online fast-fashion retailer radical projects that nett indebtedness to EBITDA volition autumn beneath 2x by the extremity of February 2027, with an eventual people beneath 1x.

Debenhams Group’s outlook for FY26

Looking ahead, Debenhams Group expects full-year adjusted EBITDA for full operations to scope astir £45m and forecasts double-digit percent maturation for FY27.

The institution intends to formally alteration its sanction from Boohoo Group Plc to Debenhams Plc erstwhile large shareholders agree.

“The momentum we person built successful the archetypal fractional sets america up good for the remainder of FY26 and we expect Adjusted EBITDA to beryllium up of past year,” Dan Finley added.

In September this year, Debenhams Group announced plans to its fashionable British manner labels successful the US, with Coast, Warehouse, Oasis, Nasty Gal and Karen Millen present disposable connected Macy’s, Bloomingdale’s and Nordstrom online marketplaces.