Boohoo, the online fashion group now trading as Debenhams Group, saw growth accelerate through the first half of its financial year, in a sign its turnaround is gathering pace.
Gross merchandise value, the total value of goods sold across its websites, rose 1.8% in the six months to 31 August, though the shape of that growth mattered more than the headline figure.
A 0.5% increase in the first quarter accelerated to 2.9% in the second.
The former fast-fashion pure-play has pinned its revival on Debenhams, the department store brand it bought out of administration, whose GMV jumped 14.1% to account for roughly 41% of the group total.
Marketplace at the core
Central to the strategy is a shift to a marketplace model, where outside brands sell through boohoo's platforms rather than the group buying and holding all the stock itself.
Marketplace sales hit a record 38.9% of group GMV, up from 32.7% a year earlier, with the company aiming for well over 50% in time.
Its Pretty Little Thing, boohoo and Karen Millen labels all returned to growth, while gross margin widened to 53.9% from 51.9%.
Debt set to vanish
Adjusted underlying earnings rose 13.9% to £24 million, and reported earnings swung to £20 million from a £3 million loss, helped by an 83.5% cut in one-off costs.
Net debt fell to £102 million from £111 million, and two recent deals should clear most of what is left.
The group sold its Sheffield warehouse and automation assets for £90 million as it moves to an asset-light model, and offloaded the Nasty Gal brand for $16 million.
As a result, net debt is expected to be negligible by the February 2027 year end.
Guidance held
The board stuck with its full-year forecast of double-digit growth in adjusted earnings of no less than £59 million, in line with market consensus.
Chief executive Dan Finley said the turnaround was continuing at pace, with growth accelerating as the half progressed and the cost programme running ahead of plan.
A £100 million fixed-cost target remains on track, taking cumulative savings under the current management to around £200 million.
Further cuts are lined up for next year, with lease costs alone due to fall from £14 million to £4 million.
