Fast fashion online retailer boohoo, now rebranded as Debenhams Group following its takeover of the erstwhile high street giant, has issued a third upgraded trading update to the markets so far this year, this morning (30 March 2026).
Chief executive Dan Finley said the Manchester-based business will make £53 million in adjusted EBITDA in the financial year to 28 February 2026, which he said is “comfortably ahead” of previous guidance.
Finley said: “Our multi-year turnaround strategy continues at pace. We are pleased with the 76% increase in H2 Adjusted EBITDA and £53m full year Adjusted EBITDA. Our pivot to the stock-lite, capital-lite, highly profitable marketplace is working.
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“The cost base has been reset, the warehouse consolidation completed, the tech re-platform delivered, the stock base rightsized, most of the onerous costs exited and the brand management teams strengthened. This is significant progress, ahead of our plan, but there is still more to be delivered and we now focus on growth.”
The update didn’t contain specific sales figures, but said the move to an “increasingly asset-lite model” for the new Debenhams brand has flowed through to the “adjusted EBITDA” numbers.
The group said all of its brands, which include PrettyLittleThing, Boohoo and Debenhams, “continue to trade profitably on an adjusted EBITDA basis.”
Boohoo shares which hit an all time low of 10p in December 2025, but have surged to 29p at one stage since the rebranded group’s latest fundraising, and opened this morning at 17p.
Adjusted EBITDA is calculated as loss before tax, interest, depreciation, amortisation, share-based payment charges and exceptional items, and is so far unaudited.
A reduction of debt has been “greatly helped” by February’s £40m fund raise, and net debt as at the end of February was £90m, which is less than 2x Adjusted EBITDA for the year just ended and is expected to be at under 1x at the end of FY2027, the statement said.
The company expects cash flow from operating activities to improve significantly as a result of materially lower exceptional costs, such as the closing of warehouses and a reduction in stock.
Cash lease costs of £18 million include the costs of leased property that is now vacant, which it will reduce to circa £13 millio. When the Group’s vacant US property lease is exited, lease costs are estimated to fall further to circa £6 million.
Remaining lease costs will predominantly relate to the Group’s Manchester head office, the fully automated warehouse in Sheffield and a small London footprint.
Capital expenditure fell in the year from £28m to £16 million, and is targeted to fall to £8 million in 2027.
Interest cost for the year to February 2026 was £21m, and is expected in the year ahead to fall as non-core property assets are disposed of under the new model.
Depreciation in FY27 is expected to fall from c. £59 million in the year to February 2026 to c. £20 million, reflecting the lower asset base following the restructure and consolidation of the operations and technology platforms.
