Debenhams Group accelerates turnaround with strong H1 2026 performance

Boohoo Group said its turnaround is accelerating, underpinned by strong half-year performance and continued expansion of its marketplace-led strategy, as the company also unveiled a new long-term incentive plan designed to retain and motivate its leadership team.

The Group's adjusted EBITDA for H1 2026 rose to 20 million pounds, 5 percent ahead of last year, with adjusted EBIT turning positive at 1.8 million pounds compared with a 9.2 million pounds loss in H1 2025. Statutory loss after tax for continuing operations narrowed significantly to 3.4 million pounds from 126.7 million pounds. Total revenue declined 23 percent to 296.9 million pounds. The Board added that the market continues to undervalue the business and that management will resume investor roadshows, reiterating its intention to rename the company Debenhams Plc once major shareholders agree.

Chief executive Dan Finley said the turnaround is “gathering real pace” as the Group focuses on simplifying operations, accelerating Debenhams’ growth and scaling fashion-led marketplaces across its brand portfolio.

Debenhams deliver strong H1 results

The Debenhams brand delivered a robust first half, with H1 2026 GMV up 20 percent and EBITDA up 50 percent year-on-year, achieving an EBITDA margin of around 15 percent. Management said the marketplace model—now central to the Group’s operating structure—is proving “stock-lite, capital-lite, margin-rich and highly cash generative,” with further gains expected as take rates increase and AI investments begin to scale. Around 20,000 partners are now active in the ecosystem, double the figure a year ago, and all Group brands—including Boohoo, PrettyLittleThing, BoohooMan and Karen Millen—are now marketplace-enabled through Debenhams’ proprietary technology platform.

Approaching the five-year anniversary of acquiring Debenhams out of administration, the Boohoo Group said it now has “clear line of sight” to the brand generating 1 billion pounds GMV and more than 50 million pounds EBITDA within three years. Youth brands have returned to profitability on an adjusted EBITDA basis as they reposition for growth, backed by a combined 46.5 million social media followers and improving GMV trends across the first three quarters. Karen Millen, now under a refreshed leadership team and a sharpened product strategy, is transitioning toward a premium global lifestyle positioning with new licensing opportunities across footwear, accessories, home and beauty.

“Debenhams is leading the way. Its double-digit growth shows what is possible across the wider Group and reinforces that the marketplace model is the right one,” Finley said. “This is a multi-year journey, and we have a clear plan and the right model in place. The momentum we have built in the first half sets us up well for the remainder of FY26.”

Boohoo Group launches Group Turnaround Scheme

Separately, the remuneration committee announced the introduction of the Group Turnaround Scheme (GTS), a new growth share arrangement replacing legacy incentives that excluded the CEO and CFO. Designed to align management rewards with long-term value creation, the GTS is intended to retain and motivate senior leaders as they execute the multi-year turnaround plan.

The Committee noted significant early progress under the new leadership team—including FY25 adjusted EBITDA of 41.6 million pounds, an oversubscribed 39 million pounds equity raise, the sale of non-core property assets and a new 175 million pounds financing facility secured more than a year ahead of maturity.

The committee said the GTS includes ambitious growth targets and is “fundamental to maintaining momentum and enabling management to focus solely on executing the turnaround strategy and creating value for all shareholders.”