Trading Statement

Boohoo Group Plc

30 March 2026

 

For Immediate Release

30 March 2026

This announcement contains inside information for the purposes of the Market Abuse Regulation (EU) No. 596/2014 (as amended) as it forms part of the domestic law of the United Kingdom by virtue of the European Union (Withdrawal) Act 2018 (as amended).

boohoo group plc

("Debenhams Group", the "Group" or the "Company")

Trading update for the year to 28 February 2026

·      Comfortably ahead of previous guidance at £53m Adjusted EBITDA delivered for FY26 (+36%)

·      76% increase in H2 Adjusted EBITDA

·      FY27 guidance raised with the higher £53m FY26 Adjusted EBITDA outturn expected to grow double-digit % in FY27¹

·      Net debt under 2x Adjusted EBITDA and guiding to 1x Adjusted EBTDA at the end of the current year to February 2027

The Board is pleased to announce its forecast delivery of £53 million Adjusted EBITDA² in the financial year to 28 February 2026 ("FY26"). This is comfortably ahead of the previously upgraded guidance in the Company's Trading Update announcement dated 28 January 2026. This year on year 36% increase in full year Adjusted EBITDA is driven by a 76% increase in H2 Adjusted EBITDA.

The Board remains confident of double-digit Adjusted EBITDA growth in the financial year ending 28 February 2027 ("FY27"). The final quarter of 2026 continued to see material improvements in the Group's GMV trend, delivering three consecutive quarters of GMV decline improvement, exiting February -5% below last year.

Dan Finley, Group CEO, said:

"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."

The Group's cost out strategy delivered a fixed cost exit rate of £119m (£11m less than the £130 million guided in February 2026), reduced from £175 million for FY26, with the Group remaining on track to meet its target of £100 million in FY27. The Board is pleased to provide the further financial guidance below, resulting from the progress of its move to an increasingly asset-lite model driven by the Debenhams brand.

All brands continue to trade profitably on an Adjusted EBITDA basis.

It has been the Board's intention to reduce the Group's debt and associated cost of interest. This reduction of debt was greatly helped by the fund raise in February 2026 of £40m. Net debt as at the end of February was £90m which is less than 2x Adjusted EBITDA for the year just ended and is expected to be at under 1x at the end of FY2027.

The Group is transitioning to an asset-lite model through marketplace, which remains at the core of the turnaround plan, and enables it to capitalise on the increased momentum in the turnaround plan that recent trading has generated, allowing the Group to maximise value from its other deleveraging options.

As stated in the previous guidance on 17^th February 2026 the Board will increasingly focus on free cash flow as a financial metric as to the performance of the business which the Board expects to materially improve in the coming year.

We expect cash flow from operating activities to improve significantly. This is a result of materially lower exceptional costs. The cost base has been reset, the warehouse consolidation completed, the tech re-platform delivered, the stock base rightsized and most of the onerous costs exited.

Cash flow from non-operating activities are expected to improve, below are the main features in the current year and for next.

In FY26 cash lease costs were £18 million which includes the costs of leased property that is now vacant. The Board now anticipates that lease costs in FY27 will reduce to c.£13 million. In addition, when the Group's vacant US property lease is exited, lease costs are estimated to fall further to c.£6 million. These remaining lease costs will predominantly relate to the Group's Manchester head office, the fully automated warehouse in Sheffield and a small London footprint. The expected reductions in lease costs will have a positive impact on cash flow. Lease costs are principally shown under depreciation from an accounting perspective.

Similarly, the Group's capex fell in the year from £28m to c.£16 million. In the FY 2027 capex is expected to fall to c.£8 million in FY27, further enhancing cash generation.

Interest costs in the year to February 2026 was £21m and is expected in the year ahead to fall as non core property assets are disposed as the business deleverages resulting in lower debt year on year.

Working capital in the year to FY26 is expected to be marginally cash flow positive and the Board is anticipating further reductions as the growth of marketplace continues.

As a result, the Group expects net debt to fall below 1x Adjusted EBITDA in the year ahead. This reduction will be driven by operating cashflows and expected disposals as outlined above with small exceptional costs.

Depreciation in FY27 is expected to fall from c. £59 million in the year to February 2026 to c. £20 million reflecting the lower asset base post write offs relating to the transformation. These include the consolidation of the DC operations and the technology platforms.

As a result of this simplification of the Group's business, the continued focus on improving and growing the asset-lite marketplace model, getting our brands back to growth and the resulting impact of significantly improving the Group's cash generation, the Directors remain confident in the outlook for FY27.

^[1] Previous guidance as at 17 February 2026 for FY27 outlook.

^[2] Adjusted EBITDA is calculated as loss before tax, interest, depreciation, amortisation, share-based payment charges and exceptional items. This figure is unaudited.

Enquiries
Debenhams Group
Phil Ellis, Chief Financial Officer		Tel: [phone]
Zeus - Nominated Adviser and Joint Broker
Dan Bate / James Edis / Emma Burn		Tel: [phone]
Benjamin Robertson / Dominic King		Tel: [phone]
Panmure Liberum - Joint Broker               Mark Dickenson / James Sinclair-Ford / Gaya Bhatt  Sodali & Co - Financial PR Adviser			Tel: [phone]
Ben Foster / Louisa Henry			Tel: [phone]

About Debenhams Group

Debenhams Group is an online platform, for fashion, home, and beauty, serving millions of customers across five shopping destinations: Debenhams, Karen Millen, boohoo, MAN and PLT. Debenhams Group dates back to 1778 when William Clark, a retail pioneer of the time, opened the UK's first department store. Today, the Group is home to Debenhams, Britain's online department store and leading fashion-led marketplaces, boohoo, PLT, MAN, and Karen Millen.

 

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