Global Fashion Group Reports Decline in Q1 2024 Financial Results

Global Fashion Group S.A. (GFG) disclosed its first-quarter financial results for 2024, facing a downturn in key performance metrics amidst challenging market conditions. Highlights include a 16.5% decline in Net Merchandise Value and an 18.8% reduction in revenue compared to the first quarter of 2023. Despite these drops, GFG noted a slight growth in Gross Margin and Adjusted EBITDA margins due to cost efficiency measures and a strong focus on inventory management.

Christoph Barchewitz, CEO of GFG, emphasized the impacts of their strategic adjustments, which have facilitated some profitability improvements despite decreasing top-line figures. The company’s marketplace platform continued to expand, making up 41% of the total Net Merchandise Value. In contrast, customer demand weakened, evidenced by reduced traffic, lower conversion rates, and an 18.5% fall in active customers.

Regional performances varied, with Latin America and South East Asia experiencing notable pressures in consumer spending and competition, influencing the overall decline in performance metrics. Despite these adversities, Gross Margins improved across all regions, attributed to healthier inventory levels and growth in marketplace and platform services. GFG concluded the quarter with considerable pro-forma cash and net cash reserves and reiterated its full-year financial guidance for 2024, expecting a 5-15% decrease in Net Merchandise Value.