boohoo shares rise as returns to earnings growth, hails turnaround plan

boohoo Group PLC on Thursday announced a return to earnings rise as its gross merchandise value climbed.

The Manchester, England-based online fashion, home and beauty retailer trading as Debenhams said its turnaround is continuing "at pace", with gross merchandise value rising 1.8% year-on-year to £864 million in the six months ended August 31, from £849 million.

Growth accelerated to 2.9% in the second quarter from 0.5% in the first, led by a 14% increase at Debenhams, which now represents around 41% of group gross merchandise value.

Marketplace GMV rises to 39% of the group total from 33%, while gross margin improved to 54% from 52%. Adjusted earnings before interest, tax, depreciation and amortisation rose 14% to £24 million from £21 million.

Pertinently, reported Ebitda improved to £20 million from a £3 million loss.

boohoo highlighted a "record" marketplace mix, materially improved profitability and "significantly" improved cash flows.

Exceptional costs reduced to £4 million from £24 million and net debt narrowed to £102 million from £111 million.

Following the £90 million Sheffield distribution centre disposal and USD16 million Nasty Gal sale, boohoo expects net debt to be negligible at year-end.

The firm reiterated guidance for full-year financial 2027 adjusted Ebitda of at least £59 million, alongside GMV growth, positive pretax profit and free cash flow generation.

Its current financial year runs to February 28.

boohoo shares rose 3.3% to 25.30 pence each on Thursday morning in London.

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