boohoo group (DEBS) Q1 2027 TU earnings summary

Executive summary

• Returned to growth in Q1 FY27 with Group GMV up 0.5% year-over-year and May GMV up 8%.

• Strongest performance from Debenhams and PrettyLittleThing; improvements in Boohoo, BoohooMan, and Karen Millen.

• Multi-year turnaround efforts, including asset-light marketplace transition and cost reductions, are driving profitability.

Financial highlights

• Gross margin expanded to 53.5% from 52.1% year-over-year.

• Adjusted EBITDA margin and Adjusted EBITDA increased substantially year-over-year.

• Exceptional costs reduced by 72% and capital expenditure fell by 54% year-over-year.

• Returns rate declined by approximately 5% in the quarter.

Outlook and guidance

• Confident in delivering double-digit Adjusted EBITDA growth for FY27 from £53m guided for FY26.

• Net debt to Adjusted EBITDA expected to fall below 1x in the current year, supported by trading cashflow and asset disposals.

• Capex to be halved year-over-year, expected at £8m for the current year.

• Lease costs to reduce to £13m this year and further to £6m after US property exit.

• Interest costs and exceptional items anticipated to fall materially.