Debenhams Group has reported accelerated growth through the first half of FY27, with adjusted EBITDA soaring 13.9 per cent to £24m.

For the six months ending 21 August, the fashion group experienced overall gross merchandise value up 1.8 per cent in the first half, rising 0.5 per cent in Q1 to 2.9 per cent in Q2.

The group said the Debenhams brand was the strongest performer, with GMV up 14.1 per cent and accounting for around 41 per cent of group GMV, while Pretty Little Thing, boohoo and Karen Millen also returned to growth.

Marketplace GMV reached a record 38.9 per cent of group GMV, up from 32.7 per cent a year earlier, with the brand partner ecosystem expanding to around 30,000 brands and partners.

Since the period ended, the group has completed the £90m disposal of its Sheffield distribution centre and lease assignment, with fulfilment transferring to a global third-party logistics provider.

Earlier this week, Debenhams also announced the completion of a £12m disposal of Nasty Gal.

Looking ahead, the group said it expects net debt to be negligible by its February 2027 year end as it remains on track to deliver its £100m fixed-cost target.

Chief executive Dan Finley described the performance as a “strong first half”.

“Our turnaround continues at pace,” Finley said. ““With the cost programme ahead of plan, lease costs falling, and net debt down year on year, we are reiterating our guidance of double-digit Adjusted EBITDA growth and free cash flow in FY27.

“Since the half year end, the Sheffield distribution centre and Nasty Gal disposals mark a further significant step in reducing leverage, and we now expect net debt to be negligible at our February 2027 year end.”

Click here to sign up to Retail Gazette‘s free daily email newsletter