No Boohooing at revived retailer

By the Editorial Team · Friday, September 18, 2026

Boohoo Group returned to profitability in the first half of the year, driven by strong performance from its Debenhams brand and growth at Pretty Little Thing and Karen Millen, with gross merchandise value increasing 1.8% to £864 million. The company’s ongoing restructuring efforts have reduced net debt and fixed costs, positioning it for continued growth despite a cautious market outlook.

Boohoo Group has reported a return to profitability and continued growth in the six months ending August 31, driven notably by its revived Debenhams brand alongside gains at Pretty Little Thing and Karen Millen. The online fashion retailer, which owns these brands, announced a 1.8% increase in gross merchandise value (GMV) to £864 million compared with the same period last year.

Chief Executive Dan Finley emphasized that the company's turnaround is progressing swiftly, highlighting a first half where growth accelerated, with GMV rising from 0.5% in the first quarter to 2.9% in the second quarter. The Debenhams brand saw particularly strong performance, posting a 14.1% increase in GMV during the period, contributing significantly to the group’s overall recovery.

Boohoo has also made significant strides in reducing its net debt, which fell by £9 million to £102 million during the six months. The company expects this figure to be “negligible” by the end of the current financial year. This reduction in debt has been supported by an 83.5% decrease in exceptional costs, now down to £4 million, and a third consecutive year-on-year reduction in capital expenditure.

The group’s restructuring efforts include a cost-cutting program that saw the disposal of the women’s fashion brand Nasty Gal and the sale of a £90 million automated fulfilment center in Sheffield. This facility will now be operated by Primark as it looks to launch an online delivery service. Boohoo indicated these transactions have helped materially reduce fixed costs, with a target to lower them to £100 million by the 2027 financial year.

Adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) rose by 13.9% to £24 million in the first half, with the company reaffirming its guidance for full-year EBITDA of at least £59 million, forecasting double-digit growth year-on-year.

Despite the positive results, market reaction was mixed. Shares initially rose following the announcement but fell by 2% in afternoon trading, reflecting some investor caution regarding the company's longer-term prospects. Analysts noted that while the turnaround appears to be gaining momentum, the broader retail environment remains challenging. Sustainable growth across the group’s diverse portfolio will be critical for Boohoo’s future investment appeal.

Overall, Boohoo’s interim results illustrate progress in its strategy to stabilize and grow after pandemic-related disruptions and intensifying competition from ultra-fast fashion rivals like Shein and Temu. The company continues to focus on restructuring and cost efficiency as central to its ongoing recovery.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.