The retailer, still listed on the London Stock Exchange as Boohoo Group, reported adjusted EBITDA of £53.3 million for the year ended 28 February 2026, a 35% increase year-on-year, and noted that every brand now operates profitably at EBITDA level. It owns Boohoo, BoohooMan, PrettyLittleThing, Karen Millen and Debenhams.
Revenue dropped 24.7% to £917 million during the period, reflecting the group’s shift to a marketplace model, while gross merchandise value (GMV) before returns fell 21.6% to £1.82 billion as the business focused on profitable sales.
The workforce has been cut by more than three-quarters, from 6,189 employees in January 2024 to roughly 1,500 as part of the turnaround.
Statutory operating losses remained at £76.9 million after the business recorded £68.1 million of exceptional items. Operating loss before exceptional items narrowed significantly to £8.8 million, while adjusted EBIT returned to profit at £7 million.
The group said PrettyLittleThing, which was temporarily placed on the market for sale in August 2025, completed its turnaround, moving from a £1 million loss in 2024/25 to a £14 million profit in 2025/26.
The Debenhams brand delivered GMV growth of 11.6% to £730 million, and adjusted EBITDA rose 38.5% to £34.8 million. The group said its marketplace model now accounts for 34.1% of total GMV, up from 23.3% a year earlier. Marketplace GMV increased 14.9% to £620.4 million.
Debenhams Group attributed its recovery to cost-cutting measures, including warehouse consolidation in Sheffield, technology platform upgrades and contract renegotiations. These initiatives yielded annualised savings of £33 million, £38 million and £35 million respectively.
Looking ahead, Debenhams Group said it has returned to growth in the first quarter of 2026/27, with GMV up 0.5% year-on-year and May GMV rising around 8%.
It expects a double-digit improvement in adjusted EBITDA during 2026/27, alongside further cost reductions and a target to reduce net debt to below one times adjusted EBITDA by year-end.
The group said 2026/27 is expected to be the year it achieves sustained free-cash-flow generation, with lease payments forecast to fall to £13 million and capital expenditure reduced to £8 million.
In August 2025, Debenhams Group secured a new £175 million financing facility through 2028 and raised £40 million via an oversubscribed equity raise, but directors have not recommended a dividend as the business continues to invest in growth and efficiency projects.
CEO Dan Finley said: “With the most significant restructuring phases substantially complete and exceptional costs expected to fall materially, 2026/27 is expected to be the year of further profit growth and sustained free-cash-flow generation.”
Last week, the group completed the sublease of its 1.1 million sq ft US distribution centre to third-party logistics provider ID Logistics.
