Debenhams Group losses narrow despite revenue fall

Debenhams Group has reduced its statutory loss after tax to £3.4m for the six months to 31 August 2025, down from £126.7m a year earlier, despite a fall in revenue as the company continued its restructuring programme.

The group reported revenues of £296.9m for the period in H126, down 23% year on year, while gross profit fell 24% to £157.2m. 

However, adjusted EBITDA rose 5% to £20m, with operating costs reduced by 27% to £137.2m as management pushed ahead with its cost-cutting and marketplace expansion plans.

The Debenhams brand was the strongest performer, with gross merchandise value up 20% on the same period last year and EBITDA 50% higher. 

The brand’s EBITDA margin was around 15% and is on track to reach £1bn GMV and more than £50m EBITDA within three years.

Marketplace sales accounted for almost one third of group GMV, up from 19% a year earlier. The group also reported that its Youth Brands, including Boohoo, PrettyLittleThing and Man, were now profitable on an adjusted EBITDA basis, with GMV declines narrowing each quarter. 

It added that Karen Millen had a refreshed leadership team and a new product strategy as part of its repositioning.

Looking ahead, Debenhams expects full-year EBITDA to be approximately £45m, for total operations. This is expected to grow double digits% in FY27.

Additionally, as part of its restructuring efforts, the board has also introduced a new remuneration scheme for senior executives. 

Under the Growth Turnaround Scheme, chief executive Dan Finley may receive up to £148.1m in share-based awards if the company’s share price reaches £3.00 over the plan’s five-year term. 

Chief financial officer Phil Ellis may receive up to £14.8m on the same basis. The company said the awards are linked to “stretching” growth targets and are intended to retain senior leaders through the turnaround.

Finley said: “Our turnaround is gathering real pace. We are making progress, we are moving fast, and we are transforming the business. We have returned all our brands to profitability and grown adjusted EBITDA. These results show that our strategy is working.

“We built this turnaround on three clear pillars: creating the right operating model, supercharging Debenhams, and pivoting our other brands into fashion-led marketplaces. We have simplified, we have focused, we are staying disciplined in how we execute, and we know there is more to do.”

He added: “This is a multi-year journey, and we have a clear plan and the right model in place. We are transforming into a lean, tech-enabled, best in class online platform business. The momentum we have built in the first half sets us up well for the remainder of FY26 and we expect adjusted EBITDA to be ahead of last year.”