Global Fashion Group Announces Q2 2024 Results

Luxembourg, 14 August 2024 - Global Fashion Group S.A. (GFG), a leading online fashion and lifestyle destination in LATAM, SEA, and ANZ, reported notable financial metrics for Q2 2024. Despite persistent demand pressures, the company saw improvements in profit and normalized free cash flow.

Key highlights for Q2 2024 include a 12.3% decrease in Net Merchandise Value (NMV) and a 12.8% reduction in revenue compared to Q2 2023. Gross margin increased to 45.0%, up from 41.5% in the previous year, while Adjusted EBITDA margin improved to (2.1)% from (8.1)%.

CEO Christoph Barchewitz emphasized the team's resilience in navigating a challenging market and highlighted strategic initiatives leading to improved Gross Profit and EBITDA margins. The company also achieved a pro-forma cash position of €317 million and pro-forma net cash of €144 million.

Regional performance varied, with LATAM experiencing an 11.1% NMV decline largely due to volatile conditions, while SEA and ANZ saw NMV decreases of 20.4% and 8.4% respectively. Inventory levels were reduced by 18% year-over-year.

GFG reaffirmed its full-year guidance, anticipating a 5-15% NMV decrease on a constant currency basis, targeting between €1.1 and €1.2 billion. The company remains focused on profitability and cash flow improvements to achieve financial sustainability.