EQS-News

GLOBAL FASHION GROUP REPORTS Q3 2023 RESULTS

EQS-News: Global Fashion Group S.A. / Key word(s): 9 Month figures/Quarter Results GLOBAL FASHION GROUP REPORTS Q3 2023 RESULTS 09.11.2023 / 08:00 CET/CEST The issuer is solely responsible for the content of this announcement. GLOBAL FASHION GROUP REPORTS Q3 2023 RESULTS

Luxembourg, 9 November 2023 - Global Fashion Group S.A. (“GFG”), the leading online fashion and lifestyle destination in LATAM, SEA and ANZ, continues to strategically position itself for a return to growth, underpinned by ongoing efficiency measures and cost initiatives.

 

Q3 2023 Highlights (growth rates at constant currency)

• Net Merchandise Value decrease of 19.4% (Q3/22: +1.6%)
• Revenue decrease of 25.0% (Q3/22: +6.2%)
• Marketplace NMV achieved 38.8% share of total NMV (Q3/22: 31.4%)
• Gross Margin 42.1% (Q3/22: 40.8%) and Adj. EBITDA Margin (9.7)% (Q3/22: (6.0)%)
• Active Customer decrease of 19.1%, Order Frequency decrease of 3.8%
• Pro-Forma Cash of €350.1m and Pro-Forma Net Cash of €158.0m¹

 

Christoph Barchewitz, CEO of GFG, said:

“Despite prolonged headwinds across our markets and the sector impacting our Q3 results, we remain resolute in executing our strategy. This includes our transition to a robust platform business and emphasis on driving technology-enabled efficiency through reducing costs and complexity. We firmly believe that these actions will position GFG favourably for a brighter market environment ahead, which we are confident will materialise.”

 

Cost of living pressures escalated across GFG’s markets in H1 leading to further step downs in consumer spending and sentiment in Q3. As a result, topline figures were weaker than expected. In Q3 2023, GFG’s Net Merchandise Value (NMV) and Revenue were down 19.4% and 25.0% yoy respectively. Orders were down 26.0% and Active Customers by 19.1%. Average Order Value increased by 9.0% due to multiple factors including elevated inflation, lower items per order and mix effects. This partially offsets the direct impact of fewer orders on NMV.