23rd Oct 2026 09:12
(Alliance News) - boohoo Group PLC on Friday said its turnaround "continued at pace" as the company reported its first pretax profit for five years.
The Manchester-based online fashion retailer, which trades as Debenhams Group, said pretax profit for the half year ended August 31 was GBP28.3 million, swinging from a GBP17.9 million loss a year earlier.
Revenue was GBP409.6 million, down 3.0% from GBP422.4 million.
Gross merchandise value before returns was GBP863.8 million, up 1.8% from GBP848.6 million. Within that, the Debenhams brand, which represented around 42% of group gross merchandise value, had GMV of GBP363.8 million, up 14.1% from GBP318.8 million. boohoo Man's GMV was GBP79.8 million, down 28% from GBP110.9 million.
Operating costs were GBP619.5 million, up 3.7% from GBP597.3 million.
Exceptional cost at earnings level fell to GBP4.3 million, down from GBP24.5 million the prior year, which included restructuring and property-related costs.
Group Chief Executive Officer Dan Finley said: "The turnaround continues at pace. This is the first time the group has delivered positive profit before tax since August 2021. I am pleased to report that net debt is expected to be negligible at year-end. This is significantly ahead of our original guidance provided at the start of the year. I see material opportunities ahead and we are fully focused on maximising them."
boohoo's net debt stood at GBP98.5 million, down from GBP111.1 million a year earlier. It is expected to fall further following the sale of the Sheffield distribution centre for GBP90 million and the Nasty Gal brand for USD16 million.
Looking ahead, boohoo retained its guidance for adjusted earnings before interest, tax, depreciation and amortisation of no less than GBP59 million. Compared with GBP53.3 million in financial 2026, this implies growth of around 11%. In the medium term, the company said it sees an opportunity for Debenhams Group to become a multi-billion-pound GMV business.
boohoo shares rose 4.0% to 25.99 pence on Friday morning in London.
By Niall Holden, Alliance News reporter
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