The gross merchandise value (GMV) rose 1.8 per cent year on year (YoY) to £864 million (~$1.16 billion, as per conversion rate of $1 = £0.7474 as on September 21, 2026) in the first half (H1) of fiscal 2027 (FY27), ended August 31, 2026.
British online fashion retailer Debenhams Group reaffirmed its FY27 outlook as H1 GMV rose 1.8 per cent to £864 million (~$1.16 billion) and adjusted EBITDA increased 13.9 per cent.
Marketplace expansion supported stronger margins, while cost reductions lowered exceptional charges and net debt.
The group expects double-digit adjusted EBITDA growth and positive profit before tax.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) increased 13.9 per cent to £24 million (~$32.11 million), while the adjusted EBITDA margin improved to 5.9 per cent from 5 per cent a year earlier. Reported EBITDA reached £20 million (~$26.76 million), compared with a loss of £3 million (~$4.01 million) in H1 FY26.
“With the cost programme ahead of plan, lease costs falling, and net debt down year on year, we are reiterating our guidance of double-digit Adjusted EBITDA growth and free cash flow in FY27,” said Dan Finley, group chief executive officer, Debenhams Group.
Marketplace shift supports H1 margin expansion
Marketplace GMV represented a record 38.9 per cent of group GMV, compared with 32.7 per cent in the prior-year period. The group expanded its brand-partner ecosystem to approximately 30,000 brands and partners, with all brands having completed their transition to the marketplace model.
The gross margin widened by 200 basis points (bps) to 53.9 per cent, while the returns rate declined by approximately 4 per cent. Exceptional costs fell 83.5 per cent to £4 million (~$5.35 million), from £24 million (~$32.11 million), Debenhams Group said in its H1 trading update.
Capital expenditure (capex) declined 33.3 per cent to £5 million (~$6.69 million), from £8 million (~$10.70 million). Net debt decreased to £102 million (~$136.47 million), compared with £111 million (~$148.51 million) a year earlier, as cash outflow after capital expenditure and interest reduced materially.
GMV growth accelerated to 2.9 per cent in the second quarter (Q2), from 0.5 per cent in the first quarter. The Debenhams brand recorded GMV growth of 14.1 per cent and accounted for approximately 41 per cent of group GMV, while PrettyLittleThing, boohoo and Karen Millen returned to growth.
FY27 outlook maintained
For FY27, the board expects GMV growth and adjusted EBITDA of no less than £59 million (~$78.94 million), in line with consensus and representing double-digit year-on-year growth. It also expects a material improvement in reported EBITDA, a return to positive profit before tax and free cash flow generation.
The company said its £100 million (~$133.80 million) fixed-cost target remained on track, taking cumulative cost reductions to approximately £200 million (~$267.59 million).
Fibre2Fashion News Desk (SG)
