Results for the six months ended 31 August 2026

GMV growth continues to accelerate

Reported EBITDA £19.7m, a £23.2m improvement on H1 FY26

Profit before tax £28.3m, a £46.2m improvement on H1 FY26

Post-period-end transactions will reduce net debt to negligible levels by year-end

Medium-term ambition for Debenhams Group of £100m+ profit before tax

Dan Finley, Group Chief Executive Officer, said:

“The turnaround continues at pace. The Group has returned to GMV growth, gross margins are expanding and returns rates lowering. Reported EBITDA has increased over 600% and profit before tax has improved to £28.3m. This is the first time the Group has delivered positive profit before tax since August 2021. I am pleased to report that net debt is expected to be negligible at year-end. This is significantly ahead of our original guidance provided at the start of the year. I see material opportunities ahead and we are fully focused on maximising them.”

H1 FY27 Financial Summary

• Adjusted EBITDA increased by 14.6% to £24.0m (H1 FY26: £21.0m), with margin of 5.9% (H1 FY26: 5.0%). Reported EBITDA was £19.7m (H1 FY26: loss of £3.5m), a £23.2m improvement, as exceptional costs reduced by 82.4% to £4.3m (H1 FY26: £24.5m).
• GMV (pre returns) grew 1.8% to £863.8m, accelerating from 0.5% in Q1 to 2.9% in Q2. With the improvement in the returns rate, GMV post returns grew 3.7%. The Debenhams brand grew 14.1% (c.42% of Group GMV), and PrettyLittleThing (PLT), boohoo and Karen Millen have all returned to growth, with the consolidation of the PLT and boohoo management teams driving visible benefits in young fashion womenswear. MAN’s rate of decline is slowing, with the focus on driving profitability. Marketplace reached a record 38.9% of GMV (H1 FY26: 32.7%), against an ambition of well over 50%, lifting gross margin by 220bps to 54.1%.
• Statutory profit before tax was £28.3m (H1 FY26: loss of £17.9m) and profit after tax £25.8m (H1 FY26: loss of £14.7m). Both periods include non-cash lease credits (c.£40m relating to the US distribution centre sublease; H1 FY26: £34.3m relating to Daventry); excluding them, the loss before tax narrowed from c.£52m to c.£12m.
• Free cash flow was an inflow of £5.6m (H1 FY26: outflow of £22.1m), with capital expenditure down 27% to £5.5m (H1 FY26: £7.5m). Net debt reduced to £98.5m (H1 FY26: £111.1m) and is expected to be negligible at the year-end following the Sheffield and Nasty Gal disposals. Inventory was £124.4m (H1 FY26: £105.9m on a like-for-like basis¹¹), reflecting deliberate and controlled investment in stock to support growth.

Summary H1 FY27 Performance

Adjusted items, which are not statutory IFRS measures, show the underlying performance of the Group excluding large, non-cash and exceptional items. Definitions are set out in the notes to this table, which follow the Cautionary Statement.

Turnaround gathering pace

• GMV returning to growth, with marketplace mix accelerating
• Returns rates lowering and gross margins expanding
• Adjusted and Reported EBITDA stepping forward, supported by a significant reduction in exceptional costs
• Profit before tax positive and free cash flow improving
• Net debt reducing, with post-period-end transactions expected to take it to negligible levels by the year-end

H1 FY26 amounts have been restated to reflect the reclassification of PLT from discontinued operations to continuing operations in the FY26 annual financial statements.

Post-Period-End

As announced, the Group completed the £90m disposal of the Sheffield automation and lease assignment on 10 September (£76.5m received post-period-end, with the remaining £13.5m to be received on vacant possession early in 2027) and the sale of Nasty Gal for $16m (£11.9m) on 15 September. Together, these transactions materially reduce the Group’s debt, and net debt is expected to be negligible at the year-end.

The Group has appointed GXO as its new global 3PL partner to migrate fulfilment from Sheffield to Burnley after Peak and operate the Burnley site, with the total cost to fulfil no more expensive than the cost incurred in Sheffield. The partnership also gives the Group better options to scale Fulfilled / Delivered by Debenhams, utilising GXO’s UK and international network.

At 31 August 2026, the Group’s Burnley distribution site was classified as held for sale. Following the period end, and as a result of the Sheffield transaction, the Group has decided to retain the site, and it is no longer classified as held for sale. The Group’s expectation of negligible net debt at the year-end does not assume any proceeds from Burnley.

OUTLOOK

Trading in September continued to be good, with the Group experiencing further accelerated growth. In respect of the full year, the Board expects to deliver GMV growth and Adjusted EBITDA of no less than £59m, as previously guided, representing double-digit growth year-on-year, together with continued material improvement in Reported EBITDA, positive profit before tax, free cash flow generation and negligible net debt. The £100m fixed cost target remains on track.

Looking ahead, additional material cost reductions are expected in FY28: depreciation reduced to £14m (FY27: £22m), lease costs reduced to £4m (FY27: £14m) and interest reduced by at least c.£10m based on the current facility, with potential for a further reduction under a new financial facility. The future cash flows are supported by significant brought forward tax losses of over £200m.

In the medium term we see the opportunity for Debenhams Group to become a £multi-billion GMV business delivering £100m+ profit before tax and generating significant cash.

Total Voting Rights

The total number of Ordinary Shares and voting rights in the Company is 1,619,720,334. No Ordinary Shares are held in treasury. This figure for the total number of Ordinary Shares may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.

Notes to the Summary H1 FY27 Performance table

¹ GMV pre returns is all merchandise sold to customers after cancellations and before returns, including VAT, carriage receipts and premier subscription income.

² Marketplace mix is GMV pre returns generated from marketplace sales divided by total Group GMV pre returns. Revenue on marketplace sales is recognised as commission only.

³ GMV post returns is all merchandise sold to customers after cancellations and after returns, including VAT, carriage receipts and premier subscription income.

⁴ Returns rate is the value of customer returns (GMV pre returns less GMV post returns) expressed as a percentage of GMV pre returns.

⁵ Operating costs are distribution costs and administrative expenses, excluding depreciation, amortisation, share-based payment charges and exceptional items. Other income is presented separately and is included in Adjusted EBITDA.

⁶ Adjusted EBITDA is calculated as profit/(loss) before tax, interest, depreciation, amortisation, share-based payment charges and exceptional items. Reported EBITDA is calculated as Adjusted EBITDA after exceptional items at EBITDA level, excluding impairments, lease credits and disposal gains and losses.

⁷ Adjusted EBIT is calculated as profit/(loss) before tax, interest, amortisation of acquired intangible assets, share-based payment charges and exceptional items.

⁸ Adjusted loss after tax is statutory profit/(loss) after tax before amortisation of acquired intangible assets, share-based payment charges, impairment and exceptional items, and the related tax effect.

⁹ Adjusted diluted loss per share is adjusted loss after tax divided by the diluted weighted average number of shares in issue during the period.

¹⁰ Free cash flow is defined as net cash generated from operating activities, less cash used for capital expenditure for the total Group.

¹¹ H1 FY26 inventory is presented on a like-for-like basis. Reported H1 FY26 inventory of £67.9m excluded £16.7m of net stock classified as held for sale and was stated after a £21.4m held-for-sale write-down.

¹² Net debt is cash and cash equivalents less interest-bearing loans and borrowings, excluding lease liabilities.

Notes to the “Turnaround gathering pace” table

ᵃ Returns rate is the value of customer returns (GMV pre returns less GMV post returns) expressed as a percentage of GMV pre returns.

ᵇ Exceptional items charged at EBITDA level, excluding impairments, lease credits and disposal gains and losses.

ᶜ Adjusted EBITDA less exceptional items at EBITDA level. H1 FY25 and H1 FY26 are derived from the exceptional items notes in the H1 FY25 and H1 FY26 interim results.

ᵈ H1 FY26 includes a £34.3m non-cash lease credit and H1 FY27 a £40.6m non-cash credit on the sublease of the US distribution centre.

ᵉ Net cash generated from operating activities, less capital expenditure, for the total Group, consistent with the H1 FY26 interim results. Tax refunded is excluded.

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FINANCIAL REVIEW

Consolidated summary income statement

Totals may not sum due to rounding.

*H1 FY26 amounts have been restated to reflect the reclassification of PLT from discontinued operations to continuing operations in the FY26 annual financial statements.

† Share-based payment charges of £3.0m include £0.7m of employer’s National Insurance contributions.

Exceptional costs before non-cash credits were £4.3m (H1 FY26: £24.5m). A full breakdown is provided in note 1 to the financial statements.

Consolidated summary statement of financial position

Liquidity and financial resources

Net debt as at H1 FY27 was £98.5m, reducing by 11.4% in comparison to H1 FY26 (£111.1m). Following the post-period-end disposals of the Sheffield automation and lease assignment and the Nasty Gal brand, net debt is expected to be negligible at the February 2027 year-end.

Consolidated summary cash flow statement

Free cash inflow/(outflow) in the summary cash flow statement is net cash generated from operating activities less capital expenditure, for the total Group, consistent with free cash flow in the Summary H1 FY27 Performance table (£5.6m; H1 FY26: £(22.1)m) and with the H1 FY26 interim results. Tax refunded and proceeds from the sale of property, plant and equipment are shown below free cash flow.

Unaudited consolidated statement of comprehensive income

for the period ended 31 August 2026

Net fair value gains/losses on cash flow hedges will be reclassified to profit or loss during the two years to 31 August 2028.

H1 FY26 amounts have been restated to reflect the reclassification of PLT from discontinued operations to continuing operations in the FY26 annual financial statements.

Unaudited consolidated statement of financial position

at 31 August 2026

Notes

(forming part of the interim report and accounts)

Accounting policies

General information

Basis of preparation

These condensed consolidated interim financial statements have been prepared in accordance with UK-adopted IAS 34, Interim Financial Reporting. The interim financial statements should be read in conjunction with the group’s Annual Report and Financial Statements for the year ended 28 February 2026, prepared and approved by the directors in accordance with UK-adopted international accounting standards and the Companies (Jersey) Law 1991 applicable to companies reporting under IFRS.

The interim financial statements are unaudited and were approved by the board of directors on 22nd October 2026.

Going concern

Accounting policies

The interim financial statements have been prepared in accordance with the accounting policies set out in the group’s Annual Report and Financial Statements for the year ended 28 February 2026.

Significant estimates and judgements

The preparation of financial statements in conformity with IFRS as adopted by the UK requires management to make judgements, estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities. The estimates and assumptions are based on historical experience and various other factors believed to be reasonable under the circumstances. Actual results could differ from these estimates and any subsequent changes are accounted for when such information becomes available. The judgements, estimates and assumptions that are the most subjective or complex are discussed below and are unchanged from those at 28 February 2026, except for those relating to finance sublease accounting, which is new in the current interim period.

Exceptional items and impairment of assets

Exceptional items are those of significant size and of a non-recurring nature that require disclosure in order that the underlying business performance can be identified. The exceptional costs in these interim statements include additional costs associated with the restructuring of warehousing facilities and onerous contracts. Such additional costs do require estimation by management.

Due to the nature of its activities, the group is not reliant on any individual customers.

Profit/(loss) before tax

Shortly before 28 February 2026, the group ceased to exercise significant influence over Revolution Beauty Group plc ("REVB") and the investment ceased to be accounted for as an associate using the equity method. At 31 August 2026 the group holds 25.47% of the ordinary share capital of REVB.

The investment is classified as an equity instrument measured at fair value through other comprehensive income (FVOCI) in accordance with IFRS 9. The group made an irrevocable election as part of the February 2026 year-end, to present subsequent changes in fair value in other comprehensive income, and these gains and losses are not subsequently reclassified to profit or loss. The fair value of the investment is determined by reference to REVB’s quoted share price and is classified within Level 1 of the fair value hierarchy. A fair value gain of £2.2 million has been recognised in other comprehensive income in the six months to 31 August 2026.

Net investment in finance lease

During the period the Group entered into an arrangement to sub-lease its US distribution centre to a third party for the remaining term of the head lease. The sub-lease has been classified as a finance lease because it transfers substantially all of the risks and rewards incidental to ownership of the right-of-use asset arising from the head lease.

On commencement of the sub-lease, the Group recognised a net investment in the sub-lease (a finance lease receivable) of £43.4m (US$58.3m). The net investment comprises the present value of the sub-lease payments receivable of £40.6m (US$54.5m) and initial direct costs of £2.8m (US$3.8m), which are included in its initial measurement. The gain of £40.6m, being the present value of the sub-lease payments receivable has been recognised in exceptional items (note 1). The Group continues to recognise the lease liability relating to the head lease (note 17). Finance income of £0.2m has been recognised in the period, giving a closing balance of £43.6m.

Finance income on the net investment in the sub-lease is recognised over the lease term. The net investment is measured at amortised cost and assessed for expected credit losses in accordance with IFRS 9.

Deferred tax

Assets

Trade receivables represent amounts due from wholesale customers.

The fair value of trade and other receivables is not materially different from the carrying value.

Trade and other payables include £10.8m (28 February 2026: £nil) in respect of claims which crystallised during the period. Of this, £1.4m is due within one year and is included within accruals and £9.4m is due after more than one year and is presented within other long-term payables in non-current liabilities. At 28 February 2026, the Group recognised a provision of £5.9m, representing its best estimate of the liability at that date (note 15). Following crystallisation of the amount during the six months ended 31 August 2026, this provision was transferred to payables

Provisions

In August 2025, the Group replaced its previous £125 million revolving credit facility, which was due to mature in October 2026, with a new three-year facility providing access to funding of up to £175 million and maturing in August 2028.

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Movement in interest-bearing loans and borrowings

Reconciliation of movements in cash flows from financing activities to movements in liabilities:

Financing cash flows of £16.3m include £1.7m of interest accrued at 28 February 2026 (within accruals) and paid in the period, which is not included in the borrowings movement above.

Reconciliation of net debt:

The lease liabilities relate to leasehold properties.

Share capital

Share capital at period end: 1,619,720,334 authorised and fully paid ordinary shares of 1p each (2025: 1,397,295,661). No dividends have been paid or are payable by the parent company for the period ended 31 August 2026 (2025: £nil).

Reserves

Contingent liabilities

Related Party Transactions

There have been no material changes in the nature or level of related party transactions during the six months ended 31 August 2026 from those disclosed in the Group’s Annual Report and Accounts for the year ended 28 February 2026.

Events after the reporting period

On 10 September 2026, the Group completed the sale of the automation in its Sheffield distribution centre and the assignment of the related lease to Primark Stores Limited for cash consideration of £90m. £76.5m was received on completion and the remaining £13.5m will be received on vacant possession early in 2027. Fulfilment of the Group’s stocked product will transfer to GXO, a global third-party logistics provider, which will migrate fulfilment to the Group’s Burnley site after Peak and operate the site. The disposal will be recognised in the second half of the year, and will result in the derecognition of the related property, plant and equipment, right-of-use asset and lease liability. The financial effect of the disposal is being assessed and will be reported in the Group's financial statements for the year ending 28 February 2027.

At 31 August 2026, the Group’s Burnley site was classified as held for sale. In September 2026, following the Sheffield transaction, the directors decided to retain the site as the Group’s fulfilment centre, to be operated by GXO. As the decision was taken after the reporting date, the site remains classified as held for sale at 31 August 2026. It will be reclassified to property, plant and equipment from the date of the decision and measured, in accordance with IFRS 5, at the lower of its carrying amount before it was classified as held for sale (adjusted for depreciation that would otherwise have been recognised) and its recoverable amount. [The reclassification is not expected to have a material effect on the income statement.]

On 15 September 2026, the Group completed the disposal of the Nasty Gal brand and its associated intellectual property for $16m. The disposal will be recognised in the second half of the year, and the financial effect of the disposal is being assessed and will be reported in the Group's financial statements for the year ending 28 February 2027.

These are non-adjusting events after the reporting period.