boohoo group (DEBS) investor relations material

Executive summary

• Turnaround continued: GMV returned to growth, returns declined, gross margin expanded, and reported EBITDA improved by £23.2m YoY to £19.7m.

• Statutory profit before tax was £28.3m, the first positive result since August 2021; the result includes a £40.6m non-cash US distribution-centre sublease credit.

Financial highlights

• Revenue was £409.6m, down 3.0% YoY; gross profit rose 1.0% to £221.5m.

• Adjusted EBITDA increased 14.6% to £24.0m; reported EBITDA was £19.7m versus a £3.5m loss, with exceptional costs before non-cash credits down to £4.3m from £24.5m.

• Statutory profit after tax was £25.8m versus a £14.7m loss; adjusted loss after tax narrowed to £2.1m from £13.9m.

• Free cash flow improved to a £5.6m inflow from a £22.1m outflow; capex fell 27% to £5.5m.

Outlook and guidance

• FY27 guidance remains GMV growth and Adjusted EBITDA of at least £59m, with continued material improvement in Reported EBITDA, positive PBT, free cash flow generation and negligible year-end net debt.

• September trading continued to show further accelerated growth; the £100m fixed-cost target remains on track.

• FY28 costs are expected to fall: depreciation to £14m from FY27 £22m, lease costs to £4m from £14m, and interest by at least ~£10m on the current facility.

• Medium-term ambition is £ multi-billion GMV and £100m+ PBT; future cash flows are supported by over £200m of brought-forward tax losses.