Online fashion group Debenhams, formerly boohoo, has said its GMV (gross merchandise value – the total value of all goods and services sold across all its platforms, websites and brands) was up 0.5% YoY in the three months to May 31, with the impressive turnaround at PrettyLittleThing (PLT) again spurring growth, although the Debenhams brand itself also lodged strong sales, while there was improvement at Boohoo, BoohooMan and Karen Millen too.
Growth was particularly strong in May ‘26, growing 8% year on year, the group added.
The return to growth was also supported by “materially improved profitability and significantly improved cashflows.”
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Gross margin grew 53.5% in the period, up from 52.1% in the prior year, and the group’s returns rate declined by c.5% in the quarter.
Adjusted EBITDA margin expanded materially year on year, delivering a substantial increase in Adjusted EBITDA in the period.
Exceptional costs reduced sharply by 72% in the period, while capital expenditure fell by 54% year on year, keeping the group “firmly on track towards free cash flow generation”.
The news comes after Debenhams reported in March that it expects to beat its profit guidance for the full year ended 28 February 2026, expecting to post adjusted EBITDA of £53m for the year, up 36% year on year and ahead of its previous guidance. PLT had been earmarked for possible sale prior to its reversal of fortunes.
The full year results will be published in two weeks from today.
The group said the reduction of net debt to adjusted EBITDA to below 1x in the current year is also on track. This will be delivered through trading cashflow and disposals, the group said, including a Burnley property and its US warehouse, both of which are set to be disposed of in the current year.
Cost cutting measures have removed significant outlay from the buisness, the group said, and fixed costs are on track to reduce to £100m during 2027. This equates to an approximately £200m cumulative reduction delivered by the new management team since key appointments made in March and April 2026.
