Debenhams Group returns to profit as marketplace strategy accelerates

Debenhams Group (formerly known as Boohoo Group) has reported a sharp improvement in profitability in the six months to 31 August 2025, as its multi-year turnaround continues to gather pace and its marketplace pivot begins to deliver.

The Group, which now positions itself as a "lean, tech-enabled online platform" spanning Debenhams, Karen Millen, Boohoo, PLT and BoohooMAN, delivered adjusted EBITDA of £20 million for the period, up 5% year on year. Adjusted EBIT returned to positive territory at £1.8 million, while statutory losses narrowed dramatically to £3.4 million from £126.7 million last year.

CEO Dan Finley said: "Our turnaround is gathering real pace. We are making progress, we are moving fast, and we are transforming the business. We have returned all our brands to profitability and grown adjusted EBITDA. These results show that our strategy is working."

Debenhams, acquired from administration nearly five years ago, remains the engine of the turnaround. GMV grew 20% to £318.8 million, while adjusted EBITDA rose 50% with margins around 15%. The company now counts around 20,000 marketplace partners, double the number it had a year ago, and expects the Debenhams brand alone to reach £1 billion GMV and more than £50 million EBITDA within three years.

The marketplace model, which the Group describes as "stock-lite, capital-lite, margin rich and highly cash generative", now accounts for 32% of overall GMV, up from 19% a year ago. All five Group brands are now marketplace enabled.

Significant cost reductions have underpinned the improvement. Fixed costs have been cut by around £160 million since February 2024, with the Group now targeting a £100 million fixed cost base in the near term. Investment in its automated Sheffield distribution centre will allow the business to exit its Daventry site and sell its Burnley freehold, while US distribution centre obligations will also be exited.

Looking ahead, full-year EBITDA is expected to reach approximately £45 million, with double-digit EBITDA growth forecast for FY27.

Finley added: "We are transforming into a best-in-class online platform business. The momentum we have built in the first half sets us up well for the remainder of the year."