Business
Q1 FY27 Trading Update
Boohoo Group Plc has reported a return to growth in its first quarter ended May 2026, with Group GMV increasing by 0.5% year-on-year, driven by strong May trading of approximately 8% growth, particularly in the Debenhams and PrettyLittleThing brands. This growth is supported by improved profitability, with gross margin expanding to 53.5% and adjusted EBITDA margin increasing significantly. Exceptional costs reduced by 72% and capital expenditure fell by 54%, positioning the Group for free cash flow generation. The company is on track to deliver double-digit percentage growth in full-year Adjusted EBITDA from the £53m guided for FY26 and reduce net debt to below 1x adjusted EBITDA. Fixed costs are projected to reduce to £100m by 2027, a cumulative £200m reduction since new management's appointment. Capital expenditure is expected to be 50% lower year-on-year, falling to £8m in the current year, with lease costs reducing to £13m and further to £6m upon exiting the US property lease. Disclaimer*
About this update from Boohoo Group Plc
3 June 2026 boohoo group plc ("Debenhams Group", the "Group" or the "Company") Trading update for the 1st quarter to May 2026 Debenhams Group Back to Growth Q1 FY27 Trading Update Momentum in the Debenhams Group multi-year turnaround accelerated in the Group's first quarter ended 31 May 2026 ("Q1"). The Board is pleased to report that the Company has returned to growth, with Group GMV up 0.5% year on year. May trading was particularly strong with GMV growth of approximately 8%. Performance was most notable across the Debenhams brand and PrettyLittleThing, with improvements also achieved in Boohoo, BoohooMan and Karen Millen. The return to growth has been supported by materially improved profitability and significantly improved cashflows. Gross margin expanded to 53.5% in the period from 52.1% in the prior year, and the Group's returns rate declined by c.5% in the quarter. Adjusted EBITDA margin expanded materially year on year, delivering a substantial increase in Adjusted EBITDA in the period. Exceptional costs reduced sharply by 72% in Q1, while capital expenditure fell by 54% year on year, keeping the Group firmly on track towards free cash flow generation. Outlook Whilst early in the current financial year, the strong momentum achieved in Q1 underpins the Board's confidence in delivering double-digit percentage growth in full year Adjusted EBITDA from the £53m guided for FY26 in March. Similarly, the reduction of net debt to adjusted EBITDA to below 1x in the current year is on track. This will be delivered through trading cashflow and disposals, including the Burnley property and the US warehouse, both of which are planned to be disposed of in the current year. Significant cost has been removed from the business and fixed costs are on track to reduce to £100m through 2027. This a c.£200m cumulative reduction delivered by the new management team since their appointment. The transition to an asset light model is progressing well. All brands have now transitioned to the marketplace model and c.25k brands / partners have now joined the Group ecosystem. Capex will be 50% lower year on year in the current year. It has been reduced from £27.5m FY25 to £16m FY26 and is expected to fall to £8m in the current year. Lease costs in the current year will reduce to £13m and will reduce further to £6m when the US vacant property lease has been exited. The £6...