Global Fashion Group Reports Adjusted EBITDA Breakeven in Q4 Amid Market Headwinds

Global Fashion Group S.A. (GFG) announced its financial results for Q4 and the full year of 2023, showcasing a resilient performance despite market challenges. The company, a leading online fashion and lifestyle destination in LATAM, SEA, and ANZ regions, achieved an Adjusted EBITDA breakeven and a Gross Margin improvement in the fourth quarter.

For Q4 2023, GFG reported a 14.0% decrease in Net Merchandise Value (NMV) and a 16.8% reduction in revenue compared to the same period last year. Despite these drops, the company increased the Marketplace NMV share to 38% of total NMV and improved its Gross Margin to 43.6%. Although Active Customers and Order Frequency saw decreases, efforts to grow Average Order Value resulted in a 6.9% increase in Q4, partially offsetting lower volumes.

In response to a challenging market, GFG focused on its Marketplace and Platform Services, reducing costs, and advancing strategic initiatives. This approach led to improvements in Gross Margin and Adjusted EBITDA in Q4. The company maintained inventory and working capital discipline, achieving a significant reduction in inventory and generating a €33m Normalised Free Cash Flow in Q4.

With a strong financial position entering 2024, GFG has set a foundation for future growth despite expecting a 5-15% decrease in NMV. The company remains committed to its efficiency programme to navigate market scenarios and seize growth opportunities.