Group revenue was down 23% to £296.9m for the period. Revenue was down across all segments except Debenhams, which saw a 6.8% climb to £98.3m. The retailer is divided segmentally by Debenhams, Karen Millen and its “Youth Brands”, which include Boohoo, Boohoo Man and PrettyLittleThing,
The group has introduced a new “Group Turnaround Scheme”, which compensates its senior team to “execute a multi-year turnaround strategy and restore profitability”.
Under the scheme, CEO Dan Finley and CFO Phil Ellis would receive up to £148.1 million and £14.8 million respectively, depending on the level of targets met. The group would not have to seek shareholder approval to implement the scheme.
Gross merchandise value for the half year was down across all brands except Debenhams, which grew 20% to £318.8m. Youth Brands were down 41% to £258m and Karen Millen was down 31% to £78.3m.
The group saw a 5% improvement in adjusted EBITDA, which reached £20m.
Gross profit was down 24% to £157.2m and the business cut borrowing 48.6% year on year to £141.4m.
In its last full year results posted in August, Debenhams Group said it was looking to offload womenswear etailer PrettyLittleThing. A buyer is yet to be announced and no update on the sales process has been given.
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.
“Debenhams is leading the way. Its double-digit growth shows what is possible across the wider Group and reinforces that the marketplace model is the right one. Our Youth Brands and Karen Millen are following that lead, now fully marketplace enabled and profitable, with the foundations in place for their next phase of growth.
“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.”
