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boohoo Group PLC on Wednesday acclaimed a return to growth in the first quarter of its financial year, boosted by strong trading across Debenhams and PrettyLittleThing. The Manchester-based online fashion retailer, which trades as Debenhams, said gross merchandise value rose 0.5% year-on-year in the first quarter to May 31, with May trading ‘particularly strong’ with GMV growth accelerating to around 8%. Peel Hunt noted this is the first positive quarter in ‘several years’ and compared to a 30% drop in GMV in the prior financial year’s first quarter. ‘Debenhams Group has returned to growth, and Q1 marks the inflection point we have been working towards,’ said Chief Executive Dan Finley who said it was the ‘result of the heavy lifting of our multi-year turnaround.’ Shares in boohoo shot up 23% to 23.13 pence each in London on Wednesday morning. Performance was most notable across the Debenhams brand and PrettyLittleThing, with improvements also achieved in boohoo, boohooMan and Karen Millen. boohoo said 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 returns rate declined by around 5% in the quarter. Adjusted adjusted earnings before interest, tax, depreciation and amortisation margin expanded ‘materially’ year on year, delivering a substantial increase in adjusted Ebitda in the period, the firm said. Exceptional costs reduced sharply by 72% in the quarter on-year, while capital expenditure fell by 54%, ‘keeping the group firmly on track towards free cash flow generation’. Guidance for double-digit adjusted Ebitda growth in financial 2027 was reiterated from the £53 million guided for financial 2026. Further, boohoo said it remains on track to generate free cash flow and reduce net debt-to-adjusted Ebitda below 1 times. ‘With the cost out ahead of plan and strong momentum carried into the year, the board’s confidence has grown,’ CEO Finlay added. Full-year results for the financial year ended February 28 are due within the next two weeks. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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