27th Nov 2025 10:23
(Alliance News) - boohoo Group PLC on Thursday announced a new management incentive scheme as it said its turnaround is "well underway."
Chief Executive Dan Finley, who could net as much as GBP148.1 million under the bonus plan said "we are making progress, we are moving fast, and we are transforming the business."
The Manchester-based online retailer which trades under the Debenhams name said it has a "clear line of sight" to the Debenhams brand delivering GBP1 billion gross merchandise value and GBP50 million plus earnings before interest, tax, depreciation and amortisation within three years.
In response, shares leapt 47% to 17.00 pence each in London on Thursday, although they remain down 35% in the past 12 months.
On Thursday, boohoo said group GMV, post returns, fell 23% to GBP406.9 million in the half year that ended August 31 from GBP529.7 million a year prior, with revenue also down 23% to GBP296.9 million from GBP385.4 million.
Pretax loss narrowed to GBP2.5 million from GBP130.0 million, while adjusted Ebitda rose 5.3% to GBP20.0 million from GBP19.0 million at a margin of 6.7%, improved from 4.9%.
Within Debenhams itself, GMV rose 20% and Ebitda by 50%, with an Ebitda margin of around 15%.
"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. Our Youth Brands and Karen Millen are following that lead, now fully marketplace-enabled and profitable, with the foundations in place for their next phase of growth," CEO Finlay added.
Youth Brands GMV decreased 41%, reflecting the rationalisation of unprofitable lines, unprofitable customers and continued softness in the youth fashion segment, boohoo said.
But all brands are now profitable on an adjusted Ebitda basis, it said, and GMV declines have "significantly improved" quarter on quarter through the first three quarters of the financial year.
GMV at Karen Millen declined 31% but the brand continues to be profitable on an adjusted Ebitda basis, boohoo said.
Looking ahead, boohoo expects full-year financial 2026 Ebitda to be around GBP45 million, for total operations. This is expected to grow by a double-digit percentage in financial 2027.
In the financial year to February 2025, boohoo reported adjusted Ebitda of GBP41.6 million.
Free cash flow improved to an outflow of GBP22.1 million, down from GBP38.9 million a year ago, while net debt fell to GBP111.1 million from GBP143.1 million.
In addition, boohoo said it will formally change the name of boohoo Group PLC to Debenhams PLC, as "we previously tried", as soon as all major shareholders agree.
The firm has faced opposition from Mike Ashley's retailing chain Frasers Group PLC, which owns around 30% of boohoo shares.
boohoo's new management scheme would see CEO Finlay net the GBP148.1 million maximum should the share price reach 300p within 5 years.
Chief Financial Officer Phil Ellis stands to get a maximum GBP14.8 million under the proposals.
boohoo said the proposed awards follow consultations with investors and advice from adviser Zeus Capital Ltd.
The tiered scheme is based on share price appreciation and kicks in when the share price reaches 35p per share.
boohoo said the planned scheme would not need a shareholder vote at a general meeting.
In supporting its decision, boohoo pointed to the action of "a major competitor who is a significant shareholder of Debenhams", referring to Frasers, who it claimed has sought to "disrupt the Debenhams Group's growth strategy and operations".
By Jeremy Cutler, Alliance News reporter
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