Boohoo’s gross merchandise value (the total value of sales on its platform) rose by 0.5% over the first quarter, driven by strong performances at Debenhams and PrettyLittleThing. Gross margins improved by 1.2 percentage points to 53.5%, helped by falling return rates.
The underlying cash profit (EBITDA) margin expanded ‘materially’ in the period, driven by the shift to an marketplace model and cost savings.
For the year ending February 2026, guidance for underlying cash profit of £53mn remains unchanged. In 2027, that’s expected to grow by double-digits, supported by £100mn of fixed cost savings. Free cash flow is also expected to turn positive in 2027.
The shares rose 11.7% in early trading.
Our view
HL view to follow.
Boohoo key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
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