Shares of boohoo group plc (DEBS.L) were jumping around 20 percent on the London Stock Exchange after the online shopping company for clothes reported Wednesday that it has returned to growth in the first quarter, with Group GMV up 0.5 percent year by year. Adjusted EBITDA and margin also increased from last year, and the firm maintained its positive outlook for fiscal 2027.
In its first-quarter trading update, the company noted that May trading had the GMV growth of approximately 8 percent, led by the Debenhams brand and PrettyLittleThing. The return to growth was attributable to significantly improved cashflows and better profitability. Adjusted EBITDA in the period increased substantially with growth in adjusted EBITDA margin.
The gross margin went up to 53.5 percent in the period from 52.1 percent in the previous year. Exceptional costs reduced drastically by 72 percent by the first quarter, while capital expenditure went down by 54 percent year on year. The fall of expenditure supports boohoo's outlook of free cash flow.
Looking forward for fiscal 2027, the company continues to expect double-digit percentage growth in adjusted EBITDA from the 53 million pounds guided for fiscal 2026.
Capex is expected to 50 percent lower year on year in the current year and to fall to 8 million pounds in the current year from 16 million pounds in 2026.
The results for fiscal 2026 will be released within the next two weeks.
On the London Stock Exchange, the shares were trading 19.68 percent higher at 22.50 pence.
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