Debenhams Group trims debt after EBITDA jumps 13.9% to £24m
Debenhams Group reported adjusted EBITDA rose 13.9% to £24m for the six months ended 21 August. Overall GMV increased 1.8% in the period, with the Debenhams brand’s GMV up 14.1% and representing about 41% of group sales. Marketplace GMV hit a record 38.9% of group GMV, up from 32.7% a year earlier.
Since the period ended, the group completed the £90m disposal of its Sheffield distribution centre and lease assignment, moving fulfilment to a global third‑party logistics provider to reduce operating costs and improve scalability across its UK and European networks. Looking ahead, Debenhams said it expects net debt to be negligible by its February 2027 year end while staying on track to meet its £100m fixed‑cost target, anticipating continued free cash flow generation and plans to reinvest savings into digital initiatives. The group also completed a £12m disposal of Nasty Gal earlier in the week, as the sale of the loss‑making brand is part of a broader strategy to simplify the portfolio and focus on core fashion labels. Debenhams reiterated its guidance of double‑digit adjusted EBITDA growth and free cash flow for FY27, reflecting confidence in the ongoing turnaround and the benefits of the cost‑saving programme.
“We now expect net debt to be negligible at our February 2027 year end,” Dan Finley, Chief Executive Officer said.
Marketplace GMV reached a record 38.9 per cent of group GMV, up from 32.7 per cent a year earlier, with the brand partner ecosystem expanding to around 30,000 brands and partners.
What we know
Debenhams Group has reported accelerated growth through the first half of FY27, with adjusted EBITDA soaring 13.9 per cent to £24m.
For the six months ending 21 August, the fashion group experienced overall gross merchandise value up 1.8 per cent in the first half, rising 0.5 per cent in Q1 to 2.9 per cent in Q2.
The group said the Debenhams brand was the strongest performer, with GMV up 14.1 per cent and accounting for around 41 per cent of group GMV, while Pretty Little Thing, boohoo and Karen Millen also returned to growth.
Marketplace GMV reached a record 38.9 per cent of group GMV, up from 32.7 per cent a year earlier, with the brand partner ecosystem expanding to around 30,000 brands and partners.
Since the period ended, the group has completed the £90m disposal of its Sheffield distribution centre and lease assignment, with fulfilment transferring to a global third-party logistics provider.