Luxembourg, 10 August 2023 – Global Fashion Group S.A. (“GFG”), the leading online fashion and lifestyle destination in LATAM, SEA and ANZ, continues to execute cost action plans to adapt to challenging market conditions and improve performance going forward.


Q2 2023 Highlights

(growth rates at constant currency)

  • Net Merchandise Value growth of (14.7)% (Q2/22: (1.9)%)
  • Revenue growth of (18.6)% (Q2/22: 0.8%)
  • Marketplace NMV achieved 39.1% share of total NMV (Q2/22: 34.7%)
  • Gross Margin 42.0% (Q2/22: 43.4%) and Adj. EBITDA Margin (7.2)% (Q2/22: (1.5)%)
  • Active Customers down (19.0)%, Order Frequency down (1.2)%
  • Pro Forma Cash* of €466.7m and Pro Forma Net Cash1 of €173.2m


Christoph Barchewitz, CEO of GFG, said:“Macro pressures continue to impact customer behaviour in GFG’s markets, which is reflected in our Q2 results. While our topline is challenged in the near-term, our commitment to improving each of our regions’ propositions for demand recovery, remains strong. These improvements will grow our platform and are adapted to our current focus on careful cost and inventory management. We are confident in our ability to navigate these challenges and in building long-term value for our customers, partners and shareholders.”  

In Q2 2023, GFG delivered NMV of €346.5 million, down 14.7% yoy. Demand was weaker than expected as is reflected in Orders down 28.1% and Active Customers down 19.0%. The lower topline was partially offset by an 18.7% increase in Average Order Value, with inflation driving more than half of the increase. The remainder was split between country and category mix, including a shift to more premium products, along with an increase in items per order. Revenue was down 18.6% yoy. 

In LATAM, NMV declined 19.0% yoy. This was a result of our drive for marketing efficiency and lower purchasing power with elevated inflation and interest rates in the region. In SEA, NMV fell 16.9% yoy reflecting our prioritisation of profit over growth in a weaker demand environment. Positive profit contributions from SEA’s growing Marketplace and Platform Services were broadly offset by fixed cost deleverage from lower volumes. In ANZ, steadily increasing interest rates, elevated inflation and GDP growth declines have led to reduced discretionary spend and higher discounting to match a competitive market. As a result, ANZ’s NMV declined by 9.0% yoy. 

GFG delivered a Gross Margin of 42.0%, a 1.4ppt decline yoy. This was driven by higher levels of promotional activity particularly in LATAM and ANZ. Gross Margin pressure and fixed cost deleverage led to a lower Adj. EBITDA margin of (7.2)%. 

Going into 2023, we prepared the business for lower volumes and started the year with less inventory than the year before. As part of GFG’s cost action plans, we reduced inventory levels by 33% (€67.5m reduction in constant currency) and reduced intake by 30% yoy in H1. Managing inventory levels remains a top priority for GFG, along with customer acquisition discipline and restricting overhead and capital investments.

GFG ended Q2 with a strong funding position of €466.7m Pro Forma cash and €173.2m Pro Forma net cash (net of the Convertible Bond and other third-party debt).2

Expectations for the full year 2023 are unchanged from the guidance issued in our announcement on 26 July 2023. GFG expects to deliver NMV growth of (15)-(10)%, c.€1.3-1.4 billion in NMV and c.€0.9 billion of Revenue, all on a constant currency basis. Adjusted EBITDA margin is expected to be (8)-(6)%. Capex investment will be c.€30 million.



Q2 2022 Q2 2023 H1 2022 H1 2023
NMV (€M) 436.6 346.5 763.4 649.9
% Constant Currency Growth (1.9)% (14.7)% 2.2% (11.2)%
REVENUE (€M) 295.6 223.8 517.6 422.3
% Constant Currency Growth 0.8% (18.6)% 2.8 (14.9)%
GROSS PROFIT (€M) 128.3 94.0 223.3 175.6
% Margin of Revenue 43.4%% 42.0 43.1 41.6
EBIT (€M) (63.5) (35.3) (92.5) (75.4)
ADJUSTED EBITDA (€M) (4.5) (16.1) (20.9) (40.1)
% Margin of Revenue (1.5)% (7.2)% (4.0)% (9.5)%



Q2 2022 Q2 2023 H1 2022 H1 2023
NET WORKING CAPITAL 10.8 21.3 10.8 21.3
Capital Expenditure 10.6 6.8 21.9 14.2
Pro-forma Cash* 561.4 466.7 561.4 466.7
Pro-forma Net Cash* 264.5 173.2 264.5 173.2
Normalised Free Cash Flow** (8.7) (7.7) (85.9) (72.7)



Q2 2022 Q2 2023 H1 2022 H1 2023
ACTIVE CUSTOMERS (M) 12.5 10.1 12.5 10.1
% Growth (7.2)% (19.0)% (7.2)% (19.0)%
NUMBER OF ORDERS (M) 7.6 5.4 13.9 10.5
% Growth (16.7)% (28.1)% (11.8)% (24.0)%
ORDER FREQUENCY (x) 2.5 2.4 2.5 2.4
% Growth 0.6% (1.2)% 0.6% (1.2)%
AVERAGE ORDER VALUE (€) 57.8 63.8 55.0 61.6
% Constant Currency Growth 17.8% 18.7% 15.9% 16.9%



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.




*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.
** Cash flow before FX retranslation, factoring cash flows, change in provisions, change in restricted cash, external funding, interest income, convertible bond coupon payments, exceptional items and fair value movement on investment funds.