Boohoo group, which is rebranding around the Debenhams name, has delivered adjusted EBITDA of £53 million for the year to 28 February 2026, comfortably ahead of the £50 million it had previously guided and up 36% on the prior year.
The improvement was driven largely by the second half, where adjusted EBITDA surged 76% year-on-year, as the group’s cost-cutting programme and pivot towards a stock-lite marketplace model began to bear fruit.
CEO Dan Finley said the business had reset its cost base, completed warehouse consolidation, delivered a tech re-platform, and rightsized its stock.
Dan Finley said in a statement: “Our multi-year turnaround strategy continues at pace. We are pleased with the 76% increase in H2 Adjusted EBITDA and £53m full year Adjusted EBITDA. Our pivot to the stock-lite, capital-lite, highly profitable marketplace is working.
“The cost base has been reset, the warehouse consolidation completed, the tech re-platform delivered, the stock base rightsized, most of the onerous costs exited and the brand management teams strengthened. This is significant progress, ahead of our plan, but there is still more to be delivered and we now focus on growth.”
Fixed costs have been cut to an exit rate of £119 million, £11 million better than the £130 million guided as recently as February, and the group is targeting £100 million in FY27. All brands are trading profitably on an adjusted EBITDA basis.
Net debt stood at £90 million at the end of February, under 2x adjusted EBITDA, helped by a £40 million fundraise during the month. The board expects that ratio to fall below 1x by the end of FY27.
In terms of the outlook, the group is guiding to double-digit adjusted EBITDA growth in the year to February 2027, with capex expected to halve to around £8 million and depreciation set to fall sharply from £59 million to around £20 million as the asset base shrinks post-transformation.
“Boohoo delivered positive news to investors’ doorsteps this morning as it continues to make headway in its turnaround strategy,” said Aarin Chiekrie, equity analyst, Hargreaves Lansdown.
“In a short trading update, the fast-fashion company revealed that full-year underlying cash profits (EBITDA) are set to jump by 36% to £53mn, edging past previous guidance of £50mn, thanks to a very strong second half.”