Half Year 2026 Boohoo Group PLC Earnings Call Transcript
Key Points
- Debenhams Group PLC (BHHOF) has successfully reduced its stock levels by 35% compared to the same period last year, indicating a more efficient inventory management.
- The company has achieved a 50% reduction in capital expenditure, reflecting a shift towards a capital-light business model.
- Adjusted EBITDA margin has improved by 180 basis points, reaching 6.7%, showcasing enhanced profitability.
- Net debt has decreased by 22%, amounting to a reduction of GBP111 million, which strengthens the company's financial position.
- Debenhams.com has experienced a 20% growth in GMV, highlighting strong online performance and consumer engagement.
- Despite improvements, Debenhams Group PLC (BHHOF) still reported a loss before tax of GBP3 million, although this is a 97% reduction from the previous year.
- The company's GMV has declined by 19% overall, indicating challenges in certain segments or markets.
- There has been a significant reduction in headcount by 70% since FY24, which may impact employee morale and operational capacity.
- The transition to a stock-light model has resulted in a 35% reduction in inventory, which could potentially limit product availability.
- The company is still in the process of a turnaround, indicating that full recovery and growth are not yet fully realized.
Good morning, and welcome to the Debenhams Group half year results for the six months ended August 31, 2025. My name is Dan Finley, and I'm the Group CEO. And I'm joined this morning by Phil Ellis, our Group CFO.
Our turnaround continues at pace. I'm pleased with the progress that we're making, but recognize that there is still much to do. Our new business model is rolling out.
Stock-light, our stock is down to GBP68 million, minus 35% on the same period last year. Capital-light, our CapEx is now GBP7.5 million, down 50% on the same period last year and increasingly margin rich.
Our adjusted EBITDA margin, 6.7%, up 180 basis points on the same period last year. Our financial performance is improving. Adjusted EBITDA is up GBP20 million in the period, plus 5% on last year.
Our net debt is down GBP111 million, down 22%. And our loss before tax is down, a loss of GBP3 million, down 97% on the same period last year. And our strategic transformation is progressing.
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