Luxembourg – Global Fashion Group S.A. (“GFG”), the leading online fashion and lifestyle destination in LATAM, SEA and ANZ, focuses on cost control and inventory management, while growing Marketplace to remain on the path to profitability.


Q1 2022 Q1 2023
REVENUE* (€M) 222.0 198.5
% Constant Currency Growth 5.4% (10.1)%
NMV* (€M) 326.8 303.3
% Constant Currency Growth 7.8% (6.7)%
GROSS PROFIT (€M) 95.0 81.5
% Margin of Revenue 42.8% 41.1%
EBIT (€M) (29.5) (40.1)
ADJUSTED EBITDA (€M) (16.4) (24.0)
% Margin of Revenue (7.4)% (12.1)%


Q1 2023 Highlights

(Growth rates at constant currency)

  • Net Merchandise Value1 growth of (6.7)% (Q1/22: 7.8%)
  • Revenue1 growth of (10.1)% (Q1/22: 5.4%)
  • Marketplace NMV achieved 38.0% share of total NMV (Q1/22: 34.5%)
  • Gross Margin 41.1% (Q1/22: 42.8%) and Adj. EBITDA Margin (12.1)% (Q1/22: (7.4)%)
  • Active Customers down (17.7)%, Order Frequency up 0.7% 
  • Pro Forma Cash of €488.5m and Pro Forma Net Cash2 of €189.9m 


Christoph Barchewitz, GFG CEO, said: “Our focus remains the same as we set out at our recent Capital Markets Day. With ongoing market uncertainty, we are concentrating on what we can control – carefully managing our costs, our inventory and growing our Marketplace, which carries no balance sheet risk. This will allow us to stay on the path to profitability, whilst we wait for the right moment to return to investing in growth.”



GFG reaffirms its full year 2023 guidance and expects to deliver NMV growth of (5)-0%, c.€1.5-1.6 billion in NMV and c.€1.0 billion of Revenue, all on a constant currency basis. Adjusted EBITDA margin is expected to be (3)-(1)%. Capex investment will be c.€35 million. The Group expects to achieve Adj. EBITDA breakeven in 2024.

The outlook reflects the demand environment and near term de-prioritisation of growth to protect cash flow and improve profitability. These actions provide the opportunity to make year over year gains in Gross Margin and Adj. EBITDA across the second half of the year. 



In the first quarter of 2023, we saw a continuation of Q4 2022’s trends with some additional Gross Margin investment. GFG’s NMV fell by 6.7% yoy to €303.3 million in Q1, driven by Order volumes down 19.1% and Active Customers down 17.7%. This was partly offset by the 15.4% increase in Average Order Value driven by inflation, country mix and category mix. Revenue was down 10.1% yoy. 

In LATAM, NMV declined 13.7% as we continued to improve marketing efficiency as part of our investment plan, which alongside challenging trading conditions meant Active Customers reduced. In SEA, we also continued to manage our marketing investment which resulted in Active Customer declines and NMV fell 6.9%. ANZ’s NMV growth remained flat at (0.2)% reflecting the more cautious consumer sentiment and higher levels of promotional activity.

GFG delivered Gross Margin of 41.1%, a 1.7ppt decline yoy driven by price activity. Profitability was impacted by fixed cost de-leverage which led to an Adj. EBITDA margin of (12.1)%. 

While macroeconomic uncertainty continues, GFG is managing inventory carefully and has reduced inventory levels by €31 million compared to last year.

GFG has a strong funding position with Pro Forma cash of €488.5m and Pro Forma net cash of €189.9m (excluding the Convertible Bond and other third-party debt) at the end of the quarter.2

The Group released its 2022 People & Planet Positive Report in April which includes GFG’s 2022achievements and future Science Based Targets.



Q1 2022 Q1 2023
% Growth 0.2% (17.7)%
% Growth (5.2)% (19.1)%
% Growth 3.9% 0.7%
% Constant Currency Growth 13.7% 15.4%



KPI and financial definitions, including alternative performance measures are available in the 2022 Annual Financial Report. 



This announcement contains forward-looking statements. Forward-looking statements should not be construed as a promise of future results and developments and involve known and unknown risks and uncertainties. Various factors could cause actual future results, performance or events to differ materially from those described in this announcement, and neither the Company nor any other person accepts any responsibility for the accuracy of the opinions expressed in this announcement or the underlying assumptions.




*NMV is the value of both Retail and Marketplace merchandise being sold through our platforms. Revenue is the Retail value plus the commission earned on a Marketplace transaction and is therefore disconnected from true volume.
**Pro-forma cash is defined as cash & cash equivalents at the end of the period, short term duration bonds and securitised funds plus restricted cash and cash on deposits. Pro-forma net cash is pro-forma cash excluding third party borrowings and convertible bond debt.