Earnings tick higher at Boohoo, shares surge
By Abigail Townsend
Date: Thursday 27 Nov 2025
(Sharecast News) - Online fashion retailer Boohoo Group insisted its turnaround was gathering pace on Thursday, despite seeing sales slide across some of its biggest brands, as it cut costs and narrowed losses.
Group revenues at the owner of Debenhams, Karen Millen and PrettyLittleThing fell 23% to £296.9m in the six months to 31 August, while pre-returns gross merchandising value - a key measure for online retailers - was off 19% at £630.8m.
Among individual segments, youth brands revenues tumbled 41% at £258m.
However, sales at Debenhams, which Boohoo bought out of administration in 2021, rose 20% to £318.8m.
That, alongside a 27% cut in operating costs, helped lift adjusted earnings before interest, tax, depreciation and amortisation by 5% at £20m.
Pre-tax losses for continuing operations also narrowed, coming in at £3.4m compared to £126.7m a year previously.
Dan Finley, chief executive, 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."
Looking to the rest of the year, Boohoo - which is seeking shareholder approval to change its named to Debenhams - said it expected final adjusted EBITDA to be ahead of last year.
Shares in the AIM-listed company - which have lost 49% in the year-to-date - surged in early trading, putting on 20% at 13.9p as at 0830 GMT.
However, Aarin Chiekrie, equity analyst at Hargreaves Lansdown, called the interim numbers "disappointing".
He continued: "The rebrand as Debenhams Group was an attempt to tap into the heritage of the iconic British brand, but it's done little to revive customer numbers and stem its falling sales.
"Breathing life back into its younger-focussed brands needs to be the focus, given that sales here are falling at an even faster pace and the segment used to account for the majority of the group's sales.
"With their strong social media following they have the potential to be great assets, but execution remains lacking."
The group first attempted to change its name to Debenhams earlier this year, but the move was blocked by Mike Ashley's Frasers Group, which owns a stake of around 29%.
Despite that, it operates as Debenhams Group, with the formal name change expected "as soon as all major shareholders agree".
Boohoo also announced on Thursday a new long-term share incentive scheme, called the group turnaround scheme, designed to motivate Finley and chief financial officer Ellis, who was appointed in March.
Finley joined Boohoo as head of Debenhams in 2022, before taking on the top job a year ago.
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