Global Fashion Group Announces Q4 and Full-Year 2023 Financial Results

On March 6, 2024, Global Fashion Group S.A. (GFG), the leading online fashion and lifestyle platform in LATAM, SEA, and ANZ, disclosed its financial results for the fourth quarter and full-year 2023. Amidst challenging market conditions, the company reported a breakeven Adjusted EBITDA and an improvement in Gross Margin for the fourth quarter.

In Q4 2023, GFG experienced a 14.0% decline in Net Merchandise Value (NMV) and a 16.8% decrease in revenue compared to the previous year. However, the company managed a gross margin of 43.6% and an Adjusted EBITDA margin of 0.2%. The decrease in Active Customers and Order Frequency contributed to the overall downturn, although an increase in Average Order Value offset some impacts.

Each region where GFG operates reported Gross Margin improvements. LATAM witnessed a 12.4% decrease in NMV, while SEA saw a decline of 18.0% in NMV but managed to exceed the Group’s platform goals. ANZ improved its Gross Margin by reaching 46.4% in Q4 2023.

GFG's strategic cost-saving measures have led to reductions in fulfillment, marketing, technology, administrative costs, and office and fulfillment center leases. The company closed the year with a solid cash position of €396.5 million Pro-Forma Cash and €206.3 million Pro-Forma Net Cash.

For 2024, GFG projects a 5-15% NMV decrease on a constant currency basis and anticipates an Adjusted EBITDA between €(25)-(45) million, considering ongoing market challenges. GFG’s focus remains on expanding its platform business and implementing cost-saving measures while preparing for future growth.