boohoo group (DEBS) Q2 2027 TU earnings summary

Executive summary

• Accelerated momentum in H1 FY27 with GMV up 1.8% year-over-year, driven by a strong Q2 and significant growth in the Debenhams brand, which now represents 41% of Group GMV.

• All brands have transitioned to a marketplace model, with marketplace GMV mix reaching a record 38.9% and an expanded partner ecosystem of around 30,000 brands.

• Turnaround strategy is delivering improved profitability, cash flow, and reduced net debt.

Financial highlights

• Adjusted EBITDA rose 13.9% to £24m, with margin up to 5.9% from 5.0% year-over-year.

• Reported EBITDA surged to £20m from a loss of £3m, a 731% improvement year-over-year.

• Gross margin expanded to 53.9% from 51.9% in H1 FY26.

• Exceptional costs reduced by 83.5% to £4m.

• Net debt decreased to £102m, down £9m year-over-year.

Outlook and guidance

• Full-year GMV growth and double-digit Adjusted EBITDA growth expected, with consensus Adjusted EBITDA of no less than £59m.

• Board anticipates continued improvement in Reported EBITDA, a return to positive profit before tax, free cash flow generation, and negligible net debt by year-end.

• £100m fixed cost target remains on track, with cumulative reductions of around £200m.

• FY28 to see further cost reductions: depreciation to £14m, interest down by at least £10m, and lease costs reduced to £4m.