boohoo turnaround continues "at pace" as the company returns to profit

boohoo Group PLC on Friday said its turnaround "continued at pace" as the company reported its first pretax profit for five years.

The Manchester-based online fashion retailer, which trades as Debenhams Group, said pretax profit for the half year ended August 31 was £28.3 million, swinging from a £17.9 million loss a year earlier.

Revenue was £409.6 million, down 3.0% from £422.4 million.

Gross merchandise value before returns was £863.8 million, up 1.8% from £848.6 million. Within that, the Debenhams brand, which represented around 42% of group gross merchandise value, had GMV of £363.8 million, up 14.1% from £318.8 million. boohoo Man's GMV was £79.8 million, down 28% from £110.9 million.

Operating costs were £619.5 million, up 3.7% from £597.3 million.

Exceptional cost at earnings level fell to £4.3 million, down from £24.5 million the prior year, which included restructuring and property-related costs.

Group Chief Executive Officer Dan Finley said: "The turnaround continues at pace. This is the first time the group has delivered positive profit before tax since August 2021. I am pleased to report that net debt is expected to be negligible at year-end. This is significantly ahead of our original guidance provided at the start of the year. I see material opportunities ahead and we are fully focused on maximising them."

boohoo's net debt stood at £98.5 million, down from £111.1 million a year earlier. It is expected to fall further following the sale of the Sheffield distribution centre for £90 million and the Nasty Gal brand for USD16 million.

Looking ahead, boohoo retained its guidance for adjusted earnings before interest, tax, depreciation and amortisation of no less than £59 million. Compared with £53.3 million in financial 2026, this implies growth of around 11%. In the medium term, the company said it sees an opportunity for Debenhams Group to become a multi-billion-pound GMV business.

boohoo shares rose 4.0% to 25.99 pence on Friday morning in London.

Copyright 2026 Alliance News Ltd. All Rights Reserved.