Global Fashion Group Revises 2024 Guidance Amid Improved Q3 Profits

Global Fashion Group S.A. (GFG) adjusted its 2024 full-year guidance, indicating better than expected financial performance. The company highlighted a notable increase in Adjusted EBITDA margin in the third quarter, aided by enhanced operational efficiency and consumer demand trends. Consequently, GFG projects a narrower year-over-year decline in Net Merchandise Value (NMV) between 8% and 12%, with an expected range of €1,100 to €1,160 million. Adjusted EBITDA is now forecasted between €(16) and €(28) million, improving from prior estimations.

The preliminary third-quarter results reflected a 4% year-over-year decrease in NMV, totaling €264 million, while revenue fell 3% to €174 million. Regional variations showed a modest decline in LATAM and ANZ, with a sharper decrease in SEA. The Adjusted EBITDA margin improved by 5 percentage points year-over-year, reaching a deficit of €(8) million. GFG ended the quarter with €189 million Pro-Forma Cash and €128 million Pro-Forma Net Cash.