Debenhams Group reports positive trading through June and July

Debenhams Group said GMV (Gross Merchandise Value) continued to grow year-on-year through June and July, while margins improved and returns declined. The business is now targeting better profit conversion and net debt below one times Adjusted EBITDA by February 2027.

In summary

• GMV grew year-on-year through June and July, with higher margins and lower returns.
• The group aims to reduce net debt below one times Adjusted EBITDA in the year ending February 2027.
• First-half performance will be reported in September, including progress on converting Adjusted EBITDA into reported profit.

Debenhams Group, the online marketplace business formerly known as boohoo Group plc, issued the update ahead of its AGM today (14 July).

Debenhams owns the Debenhams, PrettyLittleThing (PLT), boohoo, boohooMAN,  Karen Millen, Coast, Warehouse, Oasis, Burton, Dorothy Perkins and Wallis brands. Its platform covers fashion, home and beauty and reportedly links shoppers to more than 25,000 partner brands.

Debenhams Group CEO Dan Finley said in a statement ahead of the AGM: “Recent trading updates, with two upgrades to guidance in nine months, have shown that our multi-year turnaround continues at pace.

“We are pleased with the continued positive trading through June and July. GMV continues to grow year on year, margins are up and returns are down. Our platform model and diversified product assortment enables us to pivot quickly and capitalise on consumer demand. This has been especially so on Debenhams during the recent hot weather.

“Our Debenhams brand is a proven growth story with an excellent asset light business model. Young Fashion is turning around with PLT returned to growth and profitability. KM remains a quality brand with significant global potential.

Strategically the group remains well positioned with lots of optionality.”

Dan Finley, CEO at Debenhams Group

Turnaround builds on two guidance upgrades

The latest update follows two guidance upgrades in nine months. In January, the company raised its FY26 Adjusted EBITDA guidance to approximately £50 million from £45 million, citing momentum at Debenhams and improved performance within its youth brands.

For the year ended 28 February 2026, the group subsequently reported Adjusted EBITDA of £53.3 million, up 35% year-on-year. Its pre-tax loss narrowed to £108.3 million from £326.4 million, partly because exceptional costs fell.

Group GMV before returns declined 21.6% to £1.82 billion during that year, reflecting a 35.8% fall across the youth brands. In contrast, Debenhams brand GMV rose 11.6% to £730 million.

Finley said PrettyLittleThing had now returned to growth and profitability. The improvement follows the group’s January decision to retain the brand rather than continue exploring a potential sale. He also described Karen Millen as having substantial international potential.

Debt and reported profit become the next tests

Debenhams Group expects net debt to fall materially during the current year through improved trading and sales of its remaining non-core property assets. Brand-licensing opportunities and possible business disposals could provide a route to eliminating the debt, according to Finley.

The group also expects a greater proportion of Adjusted EBITDA to convert into reported EBITDA and operating profit because the main transformation costs have passed. Management expects that change to be visible in the first-half figures.

In the medium term, Finley sees scope for the Debenhams brand to generate multi-billion-pound GMV and more than £100 million in EBITDA. The group will publish its first-half performance update in September.